Change To Capital Gains Allowance Rules

HMRC are proposing changes to the rules surrounding capital gains allowances for equipment and machinery in buildings.

Under the new proposals capital allowance claims will have to be made within one year of the expenditure. No claim will be available to the initial owner or any subsequent buyer after this period has lapsed.

Owners will be required to submit a record of agreement for any purchase, to prove the amount which relates to plant and machinery. If passed into law the changes will come into effect on 6 April 2012.

The new measures are seen by some as particularly stringent and could lead businesses and other property owners to lose out significantly on allowances they ought to be entitled to.

Any owners who have recently moved into new premises or spent money on refurbishment will want to consider their position on capital allowance before time runs out.

Other changes to corporation tax structure and writing down rates are likely reduce the worth of capital allowance claims in the future, so now is the time to act..

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