Graham Sillett

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.