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Business Tax
Capital allowances
Small businesses which buy "information and communication
technologies" (covering most computer-related hardware and
software, and also some mobile phones) have enjoyed a 100% deduction
for the cost since 1 April 2000. This was due to end on 31 March
2003, but has now been extended for another year.
Tax Trap |
Don't assume the 100% relief
will always be there - watch out next year.
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Any business can claim a 100% allowance for plant and machinery
which is within certain approved "green" categories. This
year a number of water-saving technologies have been added to the
list, including leak detectors and efficient taps. The equipment
still has to be "used in the business" to qualify, rather
than merely being part of the business premises.
Urban Regeneration Companies (URCs)
To encourage contributions by businesses to new URCs, such contributions
will be deductible as trading expenses for the payer.
Lloyd's Underwriters
The Lloyd's insurance market is undergoing a programme of
reforms, which includes moving individual underwriters from unlimited
to limited liability. The Inland Revenue is reviewing the tax treatment
of this change, and will bring forward measures next year to remove
a number of potential tax disadvantages which might arise on the
change of status.
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