It has been a difficult year for our economy. Here at Stuart Rivers Associates we have put our thinking caps on with our own suggestions on how capital allowances could help regenerate the economy:
- Extend the increase to the Annual Investment Allowance to £1m (currently set to revert back to £200k from 1 January 2021)
- Increase the writing down rates in both the special rate pool & main pool (i.e. increase 6% & 18%) respectively
- Re-introduce the Enhanced Capital Allowances scheme for energy-efficient plant
- Provide additional allowances for Covid-19 related works and works relating to post Covid-19 life
- Temporarily relax Furnished Holiday Lettings qualifying rules
- Change Structures and Buildings Allowance to be a real tax saving and not a cash flow saving
If similar measures could be announced before the end of the year, they could provide some much welcome relief to businesses during these challenging times.
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