Weekly tax highlights ― 16 June 2025

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

Direct Taxes

Capital allowances: areas of uncertainty ― update for stakeholders

HMRC has provided an update to the CIOT on the guidance relating to capital allowances and the areas of uncertainty identified by stakeholders. The update outlines the revisions made to the existing guidance and the areas that remain under review.

HMRC’s update confirms that changes have been made to the guidance in relation to several specific areas. The revisions include amending references to outdated technologies and case law (for example, in CA22005), clarifying the interaction between different plant and machinery allowances at CA20008, and improving links within the guidance on the tax treatment of software at CA23410 and CA23174AB.

Additionally, the guidance on second-hand assets and long-life assets has been updated, with further clarifications provided on the application of the second-hand asset exclusion and the rules relating to long-life assets from CA23700.

Updates have also been made in relation to Real Estate Investment Trusts at IFM24010 and to Furnished Holiday Lettings, with adjustments to both CA20025 and CA20006, and improvements to the qualifying activities

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