Compared to the capital allowances turbulence of recent budgets, Autumn Budget 2024 was almost uneventful.

The message from the government regarding business investment is that it wants to create stability and predictability so to provide certainty.  The certainty to enable businesses to confidently make long-term investment decisions.

That certainty was partly demonstrated by announcing the following:

• Capping the rate of Corporation Tax at 25% for this parliament
• Confirming making permanent the £1 million Annual Investment Allowance
• Confirming making permanent Structures and Buildings Allowances
• Confirming maintaining full expensing for this parliament

The availability of the 100% first-year allowance for expenditure on electric vehicle charging points was extended for expenditure incurred to 31 March 2026.

A Corporate Tax Roadmap was published as part of the Budget.  This set out a number of government actions, initiatives and commitments on capital allowances and related investment incentives as follows:

• Continue consulting with businesses and stakeholders on simplifying the capital allowances legislation
• Continue to work with stakeholders to improve and clarify guidance on capital allowances
• Launch a consultation in coming months on the tax treatment of predevelopment costs – this follows the widespread concern following the Upper Tribunal decision reached in the Gunfleet Sands case
• Launch a consultation in Spring 2025 to review the effectiveness of the land remediation relief legislation
• Explore – when fiscal conditions allow – extending full expensing to assets purchased for leasing

The budget also announced the government’s intention to recruit an additional 5,000 HMRC compliance staff over the next five years. This is so the government can tackle the so called ‘tax gap’ – the difference between tax owed and tax received.

© Smith Kelland Limited

This is for general information purposes only. It is not advice and is not intended to be advice.