The Chancellor of the Exchequer has confirmed the long-awaited modernisation of capital allowances, which will affect tax treatment of depreciation on business cars.
In his Budget speech Gordon Brown said he would move towards a simple, two-tier system based on “how long an asset will last”. Further details will be revealed in Treasury documents to be released later today.
The Chancellor will also reduce the rate of corporation tax paid on company profits for larger companies, down from 30p to 28p in the pound from next April. Corporation tax for smaller companies, however, is going up.
