Insight Factsheet - First year allowances to end

As a one off measure, announced to combat the credit crunch, all companies and unincorporated businesses are currently entitled to a deduction against their taxable profits equivalent to 40% of the cost of qualifying plant and machinery in the year of purchase. However, these first year allowances end on 31 March 2010 for companies and 5 April 2010 for unincorporated businesses with allowances reverting to only 20% per annum. If significant purchases of plant and machinery are currently being planned it may be advantageous to bring these forward.

For the full Insight factsheet on capital allowances please click here.