Budget 2018: Other Budget items

The annual investment allowance has been increased to £1 million for qualifying expenditure on plant and machinery for the two years from 1 April 2019. Whilst this will not affect many clients’ own capital expenditure programmes it may be helpful to clients selling plant and equipment to larger organisations, who may accelerate capital programmes to utilise this two year window.

The proposed tax on digital services due in April 2020 will actually raise relatively modest amounts of revenue (£400 million per annum). It may come as no surprise that we currently have no clients in the target group for this tax, of businesses with global revenues in excess of £500 million.