The UK Treasury has published a consultation document on the tax changes to the capital allowances regime announced in this year's Budget.
In the Budget, the chancellor, Gordon Brown, reduced the main rate of capital allowances on the general pool of plant and machinery from 25% to 20%. He increased the rate of capital allowances on the pool of long-life assets - assets with a useful life of more than 25 years - from 6% to 10%.
Brown also announced the separate classification of fixtures that are integral to a building, and their inclusion in the 10% capital allowances pool and the phased withdrawal, by April 2011, of the industrial buildings and agricultural buildings allowances.
The government is particularly looking for comments from taxpayers on three features of the new arrangements: the annual investment allowance, the definition of 'integral fixtures' and high-level proposals for 'payable' enhanced capital allowances.
The consultation period will continue until October 19. Draft legislation and further technical guidance for further consultation will come after this.
