First-year allowances extended, IT 100% relief ends

The Chancellor has announced that the 50 per cent first year allowance on fixed assets for small companies will continue for another year from 1 April 2004.

However, there was no mention of the continuation of the 100 per cent allowance for IT equipment and software for small companies so it appears that this will end at the end of the tax year. Businesses planning to buy a new computer or software had better do so in the next couple of weeks.

UKTECH will be continuing coverage of the issues relevant to freelancers during the day, with expert comment and analysis.

Kevin Miller, MA FCA