I've been advised that new regulations are restricting the amount of capital assets to ?0k.

This sounds very odd to me, anyone heard of this and can point me in the right direction for reading material? If this was the case, what is classed as a capital asset (surely not vehicles) and how do solicitors and other similar partnerships get round it?

Thanks
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I think someone has got muddled here.

As from April 2008 the Annual Investment Allowance has been introduced which means that broadly speaking (get full details from your accountant) the first ?0k of investment in plant and machinery received 100% capital allowances.

You can still spend as much as you want and the rest will receive capital allowances as normal.
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The writing down capital allowance once the ?0k 100% annual invetsment allowance is used up is 20%.

A capital asset - fixed asset is any equipment you buy which will be used by the business for more than one financial tax year as opposed to an item which the business uses, consumes, within the financial year. Fixed assets includes items like plant and equipment, computers, fixtures and fittings and yes vehicles too. It is common practise to only capitalise items which can be separately identifiable and over a certain value. Once a capitalisation policy is set it should be consistently nfollowed.

Many small businesses might set a figure of say ?00 or ?00 and any purchases below the chosen level written off to expenses and not capitalised. However any additions to fixed assets already capitalised should also be capitalised regardless of the amount expended.
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