Capital Allowances – act before the March 2004 budget if you need to purchase computer equipment

Although the Chancellor’s Budget is not due until 17th March 2004, it’s thought that 100% first year capital allowances for computer equipment and peripherals will no longer be available for small enterprises after 1st April 2004, explains Darren Specterman from London based accountancy firm Glazers.

First-year capital allowances apply to computers and associated equipment such as cabling, monitors, keyboards and so on. A business owner is entitled to claim first-year capital allowances for the chargeable period in which the first-year qualifying expenditure is incurred if he/she owns the plant or machinery as a result of incurring expenditure.

Expenditure is incurred as soon as there is an unconditional obligation to pay it, as long as payment is not more than four months out of date.

As the April deadline looms you should consider acting now if you are thinking of buying computer equipment for your business.

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