Chancellor responds to OTS review on tax relief for fixed assets
Released 7 January 2019
The Chancellor has responded to the Office for Tax Simplification (OTS) review on simplifying tax relief for fixed assets.
In his response letter, the Chancellor confirms that the OTS analysis of ‘the difficult trade-offs and cost associated with moving to accounts-based depreciation’ lead him to agree with the OTS recommendation that no change is made at this time.
The report outlines alternative options to simplify the current capital allowances landscape, short of an accounts-based system. The Chancellor says that he will be asking both HM Treasury and HMRC officials to continue considering the scope for further capital allowances simplification.
View the Chancellor’s response letter.