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London Tax Network Tax Conference 2024
Capital allowances
John Lovell spoke about capital allowances. He pointed out that UK capital allowances are structured as an absolute tax saving whereas in most countries they are just a tax deferral or timing benefit. The UK is unique in that the tax benefits can be retained on the sale of an asset and John noted several aspects of capital allowances that have a beneficial result. As an example if a UK company bought plant and machinery for £10m and later sold these it could make an election claim under CAA 2001 s 198 for as low as a £1 and keep the tax benefits. Likewise if an asset is sold for a gain more tax will not be paid because plant and machinery capital allowances have been claimed (note: this does not apply to...
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