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Loanback opportunity from capital allowances

For small and medium sized companies first year capital allowances on the purchase of plant and machinery at the rate of 40% are now permanently available. Small companies will also benefit from 100% first year allowances for investment in Information and Computer Technology equipment (computers, software and internet-friendly mobile phones) are available. Companies with SSASs will have an opportunity to take a loanback from the SSAS and use the proceeds on qualifying expenditure &#45 effectively getting double relief, once on the pension contribution and once on the purchases of the capital asset. Alternatively, for companies without a SSAS, directors could draw dividends from the company and leave the funds in the company in the form of director&#39s loans which could then be used to buy the assets.

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