It is observed that time bound tax holiday couldn't provide desired results, therefore, in current finance bill instead of providing tax holiday, first year allowance
at an accelerated rate be allowed to the industrial undertakings established in the specified areas.
They enable businesses to claim a 100% first year allowance
for the capital cost of investment in plant and equipment made before March 31, 2020.
The emissions are so low, at 49g/km, that the car qualifies for a 100 per cent first year allowance
, so the entire cost of purchase can be written off in the first year of ownership.
The zero-emission powertrain offers significant savings in running costs; EVE is classed as an ultra-low emitting vehicle, benefiting from 100% first year allowance
until 2018, and "fuel" costs are reduced to as little as 2p per mile.
But a temporary first year allowance
(FYA) of 40% is available for qualifying expenditure incurred in the 12 months ended March 31, 2010, for companies and April 5, 2010, for sole traders and partnerships.
The Minister also said that investors who invest in the newly opened sectors can import plant, machinery & equipment on concessional rates and they can also avail first year allowance
of 50 per cent of the cost of plant, machinery & equipment and zero import duties on raw materials used in the production of exports is also being offered.
horse walkers, new lorries etc, the rate of first year allowance
(FYA) for capital expenditure by small businesses on plant and machinery is increased from 40 per cent to 50 per cent for the period of one year from 1 April 2006 for companies and from 6 April 2006 for businesses subject to income tax.
There is a one-off first year allowance
for certain expenditure of 40% (or 50% if incurred between April 6, 2004 and April 5, 2005).
``We'd also like to see a first year allowance
on capital expenditure forcompanies, and for that allowance to be extended to leasing equipment.
* For the industries falling in the category of export industry and hitech, first year allowance
on capital expenditure and investment at the rate of 90 per cent has been announced.
On Enhanced Capital Allowances, he said: "Small businesses still benefit from the ability to write off certain capital assets, in particular, a first year allowance
of 50 per cent on the purchase of plant and machinery."
The Chancellor must introduce a 100% First Year Allowance
to ensure that all business premises comply with the requirements of the Disability Discrimination Act.