A strange question: can you afford not to spend £500,000?
No, this is not about how many stocks and shares you can buy, but
rather the limit for which businesses can claim a full 100% tax
relief for capital expenditure, basically for buying plant and
machinery.
What has, in recent years, been a highly advantageous tax break
is about to be reduced significantly in January of next year.
As a rule, HMRC do not allow capital expenditure as a deduction
against profits but, instead, give capital allowances. Often, the
rates allowed are quite low, eg. 18% or even 8%, on a reducing
balance basis with the consequence that relief can end up being
spread over decades rather than years.
