IT tax breaks to be revived
Chancellor to reinstate SME capital allowances for technology
The Chancellor will reinstate accelerated capital allowances for IT equipment for SMEs in Wednesday's Budget, accountancy firm MacIntyre Hudson has predicted.
The 100 per cent first-year allowance gave tax breaks which encouraged SMEs to upgrade their IT infrastructure, and its removal in last year's Budget was a real blow to the channel.
Victor Dauppe, partner at MacIntyre Hudson, said: "The government likes to be seen as modern. By bringing back capital allowances for IT equipment the Chancellor could be seen as doing something positive for smaller enterprises."
Mike Lawrence, managing director at VAR Bentpenny, said: "It would be great news if the capital allowance is reintroduced. The government needs to be doing more to help firms get off the ground. Small firms need to be able to keep the money they make at the start so they can reinvest it."