As explained in our earlier news item, OTS publishes call for evidence as part of capital allowances and depreciation review, the OTS is focussing on whether the use of accounts depreciation to provide relief for capital expenditure instead of capital allowances would simplify the preparation of tax returns for incorporated and unincorporated business.
We need your feedback to inform our response. Please email comments to firstname.lastname@example.org but in the meantime respond to our short poll on this page.
Capital allowances and depreciation both give deduction from taxable income - Once. Capital allowances are restrictive and may force businesses to take decisions which may not be optimal. If businesses are allowed to use depreciation they would take better decisions.