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Business
Tax
Capital Allowances
The 100% first year allowance for small business expenditure on
computers has not been extended, so it ends on 31 March 2004. The
general rate of FYA is increased for small businesses from 40% to
50% for one year from 1 April 2004 (companies) and 6 April 2004
(others).
Renovation of premises
A new relief will be introduced in 2005 (provided the European Union
does not raise objections) to give 100% tax relief for expenditure
on renovating business premises in the approximately 2,000 "enterprise
areas" which currently qualify for Stamp Duty Land Tax and
other reliefs. The capital costs of renovating a property will be
treated as allowable expenses, if the property has been vacant for
a year when the project begins.
Construction Industry Deduction Scheme (CIDS)
During 2003, the Revenue announced the intention to reform the CIDS
(following on from a major revision in 1999). This has been deferred
to April 2006, but the new rules will be included in this year's
Finance Act. In the meantime, the Revenue "will increase compliance
activity" to ensure that traders are following the existing
rules.
Lloyd's underwriters
For many years, there have been reliefs for traders who transfer
their business to a company - they can preserve the benefit of unrelieved
losses against income from the company, and can defer capital gains
arising on the transfer of the assets on incorporation. These reliefs
are now extended to a Lloyd's underwriter who incorporates on or
after 6 April 2004. |
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