Enhanced Capital Allowances
100% capital allowances would be available for plant and machinery investment incurred between April 2012 and March 2017 in the following six English Enterprise Zones:
- Black Country
- North Eastern
- Tees Valley
Seed Enterprise Investment Scheme
From April 2012, in a further significant improvement to the Enterprise Investment Scheme, 50% income tax relief will be provided on investments of up to £100,000 in qualifying new start ups, regardless of the investor’s marginal rate of income tax. This new Seed Enterprise Investment Scheme (SEIS) may be more of a major headline than a major new tax incentive, however, as individual companies are restricted to a cumulative investment limit of £150,000. A capital gains tax holiday will be offered for investments made to the SEIS. This will provide for CGT exemption on gains realised on disposal of an asset in 2012/13 and invested through SEIS in the same tax year, giving overall tax relief at up to 78%.
Relaxing connected person rules for the Enterprise Investment Scheme and anti-avoidance to prevent its general abuse. The £1m investment limit per company for Venture Capital Trusts will be removed to reduce the administrative burden of the scheme.
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