End in sight for UK IT tax holiday
No sign of renewal
A treasury initiative to give small and medium-sized businesses 100 per cent tax relief on IT purchases runs out at the end of the month. There is no sign from Chancellor Gordon Brown that he will extend the gig in the next Budget, accountancy firm Hacker Young warns.
Introduced in 2000, the scheme is designed for businesses turning over less than £2.8 million, with assets of less than £1.4 million, and fewer than 50 employees.
Says Roy Maugham, tax partner at Hacker Young: "Many SME's have taken advantage of this scheme, but there are many more that are not even aware of it. IT spend is a necessity so it makes sense for any small business looking to buy IT in the next two years to invest now while they can still escape tax."
Thanks for the advice, Roy. But a bit late, maybe? ®