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The Finance Act 2000 has created a tax efficient way to provide directors of small companies with computer equipment for private use.
Section 70, Finance Act 2000 inserts into section 22, Capital Allowances Act 1990 new subsections giving 100 per cent first year allowances on expenditure by a small company or a small business on computer equipment. A small company is one that satisfies two of the following conditions:
* turnover does not exceed £2.8 million;
* the balance sheet total is below £14 million;
* there are 50 or fewer employees.
The Finance Act 2000 has created a tax efficient way to provide directors of small companies with computer equipment for private use.
Section 70 Finance Act 2000 inserts into section 22 Capital Allowances Act 1990 new subsections giving 100 per cent first year allowances on expenditure by a small company or a small business on computer equipment. A small company is one that satisfies two of the following conditions:
* turnover does not exceed £2.8 million;
* the balance sheet total is below £14 million;
* there are 50 or fewer employees.
Under section 156A Taxes Act 1988 the first £500 of a benefit in kind on the provision of computer equipment for private use is not chargeable. The benefit is calculated by reference to 20 per cent of the market value (including VAT) when first provided so there is no benefit on a new...
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