In the last few weeks we have had a few shake ups in the world of capital allowances, the Office of Tax Simplification (OTS) published the response to the consultation on updating the capital allowances regime, with a sigh of a relief they don’t propose changing the regime but have included areas for improvement, more on that later. And, we also had a new capital allowances case from the First Tier Tribunal (FTT).
This case, may change what had previously been thought where the time limits for making capital allowances claims. Up to that the case, the statute had been interpreted that the time limit for making claims was up to 12 months after the filing date for the company tax return for the accounting period. That meant that in most cases the time limit was 2 years after the end of the accounting period. However, this FFT case has turned that on its head, and their interpretation suggests a tax comp filed late which includes capital allowances claim may be allowed. For our summary on the case click here.