Changes to UK Capital Allowances Regime - KPMG Ireland
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Ireland consults on Interest Limitation rule

Changes to UK Capital Allowances Regime

Changes to UK Capital Allowances Regime

TaxWatch

TaxWatch

Access KPMG's client-only portal of publications on topical tax issues.

Mat Scott and Andrew Reid, KPMG Belfast take a look at a series of changes to the United Kingdom (UK) tax regime for capital allowances on machinery and equipment as well as buildings and structures. In this article, they ask whether these changes could present opportunities for enhanced tax relief for businesses planning investment in assets in Northern Ireland and elsewhere in the UK.

The article will cover an overview of the main changes which include:

  • a new category of relief for expenditure on commercial structures and buildings introduced for qualifying expenditure incurred on or after 29 October 2018,
  • an increase to £1million in the Annual Investment Allowance (AIA) until December 2020 (from 1 January 2019),
  • a reduction in the rate of writing down allowances for the special rate pool from 8% to 6% from April 2019, and
  • the cessation of the Enhanced Capital Allowances scheme from April 2020.
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