Director Aubrey Calderwood has featured in Taxation magazine, where he discusses the recent Office of Tax Simplification consultation that concluded the capital allowances regime should be reformed rather than replaced by accounts depreciation.
He says: “The OTS report on whether accounting depreciation or capital allowances should be the method for giving tax relief for tangible fixed assets is detailed, well researched and thought provoking. However, the recommendation that capital allowances should be retained for now should be the catalyst for more work into how the CAs regime can be reformed and improved in practice.
“This should be done as soon as possible. We are entering an uncertain post-Brexit phase and need a range of functioning and effective fiscal tools to encourage investment and growth in our economy. Let’s hope we can put in place these much needed reforms sooner rather than later.”
In the article, Aubrey looks at the regime as it currently stands, how to fix it and what comes next.
Read the full piece on Taxation.co.uk here.