capital allowances

Tax

SMEs Unaware of Capital Allowances

Just one in three small businesses are aware that they can reduce their tax bill by claiming allowances for outlay on new equipment, according to research from Cambridge University’s Centre for Business Research (CBR). The CBR survey of 2,500 small firms also revealed that of the third of small firms that were aware of capital allowances, just 5% were taking advantage of them. The report blames the Government’s failure to promote capital allowances and has prompted calls for a change to the system. Stephen Sklaroff director general at the Finance and Leasing Association (FLA), which sponsored the research said: “The survey shows that HM Treasury needs to rethink the current capital allowance regime. More needs to be done to spread awareness among SMEs, and the same allowa... »