News & Current Issues
Budget 2008
The Chancellor announced significant changes to the UK capital allowances regime and introduced an extension of measures aimed at bringing brownfield land back into use. All of the changes have been anticipated and have been considered as part of an on-going consultation process initiated in the March 2007 Budget. In addition to these changes, an increase in the rate of R&D tax credits was announced.
A summary of the new measures can be seen here and details of the changes can be seen at www.hmrc.gov.uk/budget2008/notes-pdf.htm
If you would like any clarification or wish to discuss any of the measures in detail please contact Aubrey Calderwood calderwood@capitus.co.uk or call 028 9051 1238
The Special Commissioners' Decision SPC00657 - JD Wetherspoon
On 21 December 2007, the Special Commissioners have given their decision on the case of JD Wetherspoon plc (Appellant) and HMRC (Respondent).
The case concerned capital allowances under sections 24 and 66 of the Capital Allowances Act 1990 for expenditure on fitting out and refurbishing public houses.
In summary, clarification was given on the scope of the application of CAA 2001 s25 (Alterations Incidental to the Installation of Plant and Machinery) and how to apportion "Preliminaries" on Plant and Machinery Claims. Both these points have major implications for taxpayers.
Contact us for details
Click here to view the full decision document
Abolition of Industrial Buildings Allowances
The March 2007 budget announced the phasing out of IBAs over the next four years with eventual abolition in 2011. This measure will have a major impact for both the manufacturing and hotel sectors.
Click here to find out more about the general measures
Click here to find out how the hotel sector can mitigate their tax liabilities.
HMRC's Approach to Claim Settlement
HMRC have compiled a guidance note on their approach to the settlement of claims. Entitled "Revenue & Customs Brief 44/07 - Litigation and Settlements Strategy (LSS)", the note covers topics such as how and when agreements with the taxpayer should be reached and the criteria for when the Inspector of Taxes will revert to litigation. A full text of the document can be found here
