Capital Allowances

Extension of Enhanced Capital Allowances for Zero-Emission Goods Vehicles to 2018

Legislation will be introduced in Finance Bill 2015 to extend the availability of 100% enhanced capital allowances (ECAs) for zero-emission goods vehicles to 31 March 2018 for corporation tax purposes and to 5 April 2018 for income tax purposes. In addition a rule will be introduced preventing claims to the ECA being made if another form of State aid has been, or will be, received, in order to bring the relief into line with other State aids.

Capital Allowances: Anti-Avoidance Rules for Plant and Machinery

With effect from 26 February 2015 a further restriction will apply to the amount of qualifying expenditure on which capital allowances may be claimed on an item of plant and machinery as a result of a connected party transaction, a sale and leaseback, a transfer and long funding leaseback, or a transfer and subsequent hire-purchase. The new restriction will apply in certain circumstances where the person disposing of the asset does not bring a disposal value into account. When the restriction applies the person acquiring the asset will be treated, for the purposes of plant and machinery allowances, as having no qualifying expenditure.