Chancellor Jeremy Hunt used his Autumn Statement to make Full Expensing permanent
for those businesses investing in IT equipment, plant and machinery.
The Chancellor said he was aiming to stimulate economic growth and highlighted
110 measures for businesses in the Statement.
Full Expensing was first announced in the March Budget and was scheduled to last
for three years. The rules allow a 100% write-off on qualifying expenditure on
most plant and machinery (excluding cars) as long as it is unused and not
second-hand.
Mr Hunt has now made it permanent and said it represents the 'largest
business tax cut in modern British history', worth £11 billion per
annum.
The Chancellor also extended the tax reliefs and incentives for Freeports and the
Investment Zones programme from five to ten years. In addition, he announced
three advanced manufacturing Investment Zones, which will be established in
Greater Manchester, the East Midlands and the West Midlands.
There is also a business rates support package worth £4.3 billion over the next
five years to help high streets and protect small businesses. This includes a
rollover of the 75% retail, hospitality and leisure relief.
Rain Newton-Smith, Chief Executive of the Confederation of British Industry
(CBI), said:
'Making full capital expensing a permanent feature of the tax system can be
transformational for accelerating growth and improving living standards in
the long-term. Helping firms to unleash pent-up investment is critical to
getting momentum into the economy.'
Internet link: GOV.UK CBI website