UK Treasury Announces Business Tax Reform Consultation

byJason Gorringe, Tax-News.com, London

30 July 2007

Financial Secretary to the Treasury, Jane Kennedy on Thursday launched a consultation on changes to capital allowances - part of the package of reforms to business tax announced in Budget 2007.

The consultation document outlines the package of reforms and seeks feedback from business on three new elements of the capital allowances regime, namely:

• The annual investment allowance;
• The definition of 'integral fixtures' to be assigned to the 10% pool; and
• Payable enhanced capital allowances for environmentally beneficial investment.

Launching the consultation, Ms Kennedy stated that:

"The 2007 Budget firmly underlined the Government's ongoing commitment to provide the best possible environment for business, and to maintain a modern and competitive business tax regime, which promotes investment, innovation and growth, and continues to reflect the realities of modern business."

"The consultation document I am launching today will provide the opportunity for business to shape these proposals in advance of legislation next year."

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