Business friendly tax changes on the horizon

On 23 September 2019 the Government announced its intention to implement two Tax Working Group recommendations. The Government plans to:

  • allow a deduction for feasibility expenditure for businesses. Previously, if expenditure related to a capital project that expenditure would also be capital. In situations where the project does not go ahead no deduction is allowed. Under these proposed changes feasibility expenditure of less than $10,000 would be immediately deductible with amounts over this threshold being spread over five years. This includes projects that do not go ahead.
  • relax the loss continuity rules to make it easier for start-up companies to attract investment and get off the ground.

As of today no further information has been released on these proposals. Consultation is expected to begin later in the year. We will provide a further update when the consultation documents have been released.

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