{"id":1734,"date":"2024-03-05T13:00:00","date_gmt":"2024-03-05T13:00:00","guid":{"rendered":"https:\/\/ctt-group.co.uk\/accountancy\/?p=1734"},"modified":"2024-03-05T13:44:16","modified_gmt":"2024-03-05T13:44:16","slug":"a-guide-to-capital-gains-tax","status":"publish","type":"post","link":"https:\/\/ctt-group.co.uk\/accountancy\/a-guide-to-capital-gains-tax\/","title":{"rendered":"Changes to 2023-24 Tax allowances: what to be aware of"},"content":{"rendered":"
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The end of the 2023-24 tax year is fast approaching. This year, there are several key changes to be aware of that may affect your tax allowances and business. Here’s a look at the initiatives in place for the 2023-24 tax year and the ways in which you can maximise your allowances before the end of the financial year.<\/p>\n

End of Super-Deduction scheme<\/strong><\/h4>\n

The government’s two-year Super-Deduction scheme, which allowed companies to claim 130% capital allowances on qualifying plant and machinery investments from April 2021, ended on 31 March 2023. This means any investments made after 31 March last year are ineligible for Super-Deduction.<\/p>\n

Instead, two capital allowance schemes have been brought in to replace it for 2023-24. These are a new Full Expensing scheme and an extension of the 50% First-Year allowance (FYA).<\/p>\n

Full Expensing and Extension of FYA<\/strong><\/h4>\n

The new Full Expensing initiative offers businesses 100% Capital allowances relief on qualifying plant and machinery investments in the year they incur the expenditure. This could reduce taxes by up to 25% for every pound invested.<\/p>\n

The scheme was launched in April 2023 and will be available for businesses until the end of March 2026 with possible plans to make it permeant.<\/p>\n

Introduced on 1 April 2021 as a temporary measure, the 50% FYA has been extended until March 2026. It allows businesses to claim 50% of the cost of eligible capital expenditure on special rate assets, which is then deducted from their tax bill in the year the expenditure is incurred. The remaining 50% of the cost can be claimed through Capital allowances over future years. The 50% FYA is only available to companies paying Corporation Tax.<\/p>\n

Corporation Tax increase <\/strong><\/h4>\n

In March 2021 the government announced its plans to increase Corporation Tax from the flat rate of 19% to a rate of up to 25% for companies with taxable profits over \u00a3250,000. These plans have gone ahead and could cause significant cost and disruption for those businesses affected. The new rates effective from April 2023 are:<\/p>\n