Today Harrisons Accountants in Biggleswade, Bedfordshire are taking a quick look at the current main capital allowances from April 2009.

From 1 April 2009 (6 April 2009 for unincorporated businesses), there is a new expenditure threshold of £50,000. This means that any capital equipment (excluding cars) purchased up to this level qualifies for an 100% allowance. Please note that where the chargeable period is less than a year, the allowance is calculated on a pro-rata basis.

Expenditure over the £50,000, again excluding cars, is eligible for a 40% writing down allowance for tax purposes. Any expenditure brought forward in the businesses capital allowance pool is subject to a reduce writing down allowance of 20% (was 25%). Cars in this category (emitting more that 160g/km C02) are eligible for a 10% writing down allowance.

Cars emitting less than 160g/km C02 are eligible for 20% writing down allowance.

This is not an exhaustive list but should give some help in planning any equipment purchases to maximise the tax allowances available.

If you have any queries on capital allowances or any other tax issue, please contact Harrisons Accountancy.