Capital Allowances Reform: Assessing the Options to Encourage Greater Private Sector Investment
June 28, 2022
Capital Allowances Reform: Assessing the Options to Encourage Greater Private Sector InvestmentDownload Article
In this article Suzanne Alcock, Managing Director of our European Tax Advisory team highlights the key aspects of the UK government’s consultation for Potential Reforms to the UK’s Capital Allowance Regime.
This is an extract from Tax Journal, first published on May 25, 2022. The whole publication is available at https://www.taxjournal.com/articles/capital-allowances-reform-assessing-the-options-to-encourage-greater-private-sector-investment.
“Levels of capital investment committed by the UK private sector and the associated tax relief available lag behind its competitors, resulting in lower productivity and predicted growth. HMRC has published a consultation seeking views on changes to the capital allowances regime to encourage increased investment. Several options are under consideration and it is important that any changes made have a broad application, such that all taxpayers can benefit, including companies awash with losses. Taxpayers should model the impact of options and engage openly and honestly with HMRC so that feedback is acted upon, so changes can be made resulting in the desired outcome.”
Posted with permission from Tax Journal ©2022.