The Government has bought forward the closure of a loophole which allowed businesses to accelerate capital allowances claims for plant and machinery and obtain advantageous early tax relief.
The change, which will come into effect immediately, was announced today by Economic Secretary to the Treasury Justine Greening.
The closure of the loophole, which was originally proposed for April 2012, has been brought forward because of evidence that not doing so could lead to the loss of significant revenue to the Exchequer. Legislation, which will have effect from today, will be introduced in the 2012 Finance Bill.Further details on the change will be available on the HMRC website.
The Economic Secretary to the Treasury, Justine Greening said:
The Government is determined to reduce tax avoidance in order to protect the Exchequer, which provides funding for public services, and maintain fairness for the taxpayer. By ending this loophole today we will preserve important revenue while maintaining a fair system of capital allowances to support business investment.
Notes for editors
More details on this change can be found on the HMRC website (opens in new browser window).
A Written Ministerial Statement confirming this measure will be made at the first opportunity following Parliamentary recess.
Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to email@example.com
Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.