24th March 2010 BUDGET PROPOSALS
AND CHANGES FOR 2010/2011 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

6 Businesses - Captial Allowances

6.1 The Annual Investment Allowance (AIA) was introduced from 2008/2009 for individuals, partnerships and companies.

6.2 The AIA provides an annual 100% allowance for the first £100,000 of investment in plant and machinery (other than cars) to all businesses, regardless of size (increased from £50,000 in 2009/2010).

6.3 Expenditure in excess of the annual £100,000 limit will fall into either a 20% main rate pool or a 10% special rate pool where it will attract writing down allowances at the appropriate rate.

6.4 The AIA is in addition to the existing 100% enhanced capital allowances schemes for environmentally beneficial plant and machinery. This includes cars with CO2 emissions below 100g/km or electric cars or vans from 2010/2011.

6.5 Industrial Buildings Allowances and Agricultural Buildings Allowances are being withdrawn over a four year period from 2008/2009.

6.6 From 2009/2010 the rate of capital allowances on qualifying cars will depend on the cars CO2 emissions. Expenditure on cars with CO2 emissions of 160g/km or less will be allocated to the 20% main rate pool. Those with emissions exceeding 160g/km will be allocated to the 10% special rate pool.

7 Businesses – Loss Relief

7.1 Furnished Holiday Lettings

From 2010/2011 losses from furnished holiday lettings will no longer be able to be set against other personal income.