BIA response to HMT's call for views on potential reforms to UK’s capital allowance regime

BIA has responded to HM Treasury's call for views on potential reforms to UK’s capital allowance regime.

In our response, we called for:

• Capital expenditure to be included within R&D tax credits eligible costs to create an incentive for loss-making companies to invest in capital equipment and buildings
• Have an additional FYA/Super deduction for Output
• Maintain a fixed AIA of £500k as a simplification measure
• Otherwise, maintain current WDA rates as they are