Budget 2007 — Capital Allowances

For the first time in many years this Budget included significant provisions relating to capital allowances and the reaction of both tax specialists and business leaders has been almost unreservedly negative.

The big surprise was the impending abolition of industrial buildings allowances (IBAs) and agricultural buildings allowances (ABAs) widely seen as an unwarranted attack on the British manufacturing hotel and transportation industries not to mention farming. The withdrawal of the relief will cost these sectors dear and scarcely encourages investment. Adverse effects on business including business closures...