| Uniform Capital Allowances - New Rules |
| Uniform Capital Allowances - New Rules |
A uniform capital allowance system is proposed to apply from 1 July 2001. It will provide a set of general rules for calculating tax deductions for the notional decline in the value of most depreciating assets.
There have been some recent changes to the proposed new rules. A new rule applies from 9 May 2001, preventing artificially accelerated tax deductions where an asset is acquired from an associate, or where the end user does not change (such as sale and lease-back arrangements). Broadly, the new owner must adopt the same depreciation method as the previous holder.
From 1 July 2001, certain additional black hole expenditure, such as unsuccessful takeover costs, costs incurred upon cessation of a business and the costs of winding up a company may be immediately tax deductible.
If you need further information on the proposed uniform capital allowance system please contact us.
7th-August-2001 |
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