are a government tax relief entitlement set up to encourage people to invest in their businesses.
This month the proposed rise in capital allowance
, and the new Wales Economic Growth Fund, should both come into play, and will hopefully lead to greater investment within Wales and help businesses plan for their long-term future.
MoneyBee Tax estimates that, on average, for every 100,000[pounds sterling] spent on premises, capital allowances
could be claimed on around 30% of it.
To view the World Finance microsite on capital allowances
, go to http://www.
Yorkshire Bank conducted a survey which found that only five per cent of SMEs said they had taken advantage of entrepreneurial or research and development tax relief, capital allowances
or government investment incentives aimed at improving environmental performance.
Business Minister Edwina Hart said discussions are continuing between Cardiff and London on the viability of extending Enhanced Capital Allowances
for Wales beyond Deeside.
In addition to the usual considerations - such as the funding of the purchase, the structure that is best to hold the assets and the timing - there is also an additional factor: the availability of capital allowances
which change significantly in April 2012: Writing down allowances are due to fall from 20% to 18% Long life assets writing down allowances will reduce from 10%**The Annual Investment Allowance (AIA) - which previously gave relief for 100% of the first pounds 100,000 of expenditure - will fall to pounds 25,000 per annum.
But the LEP also wants 10 sites - including the sprawling process hub at Wilton - to get huge capital allowances
and six more to be eligible for tax increment finance, which allows firms to use future tax gains to fund investment projects.
Businesses whose year-end is March 31 or April 30 and who are planning on significant capital outlay could obtain pounds 100,000 capital allowances
by careful timing of their expenditure - pounds 50,000 before their year end and pounds 50,000 immediately after.
THE reduction in corporation tax rate from 30% to 28% should be good news for all companies, but there is a sting in the tail for property investors - the changes will be paid for by a reduction in capital allowances
By buying fuel efficient equipment they can get 100 per cent capital allowances
in the same year of purchase.
Vodafone said CWW's historic tax losses and capital allowances
- claims that help lower taxes - were not "key to the rationale" underpinning the offer.