Patrick Stevens, tax partner at Ernst & Young, comments on Enterprise Zones
“The Chancellor has announced further incentives to Enterprise Zones. In the case of six of the Enterprise Zones that have recently been identified, tax depreciation of 100% of the expenditure on plant and machinery will now be available rather than the normal rate of 18% or 8% in some cases. This enhancement is despite the fact that some commentators consider that Enterprise Zones only move investment from one locality to another one nearby. If the government is convinced that these Zones are a good idea they could have gone further. The last time they were introduced 30 years ago they included tax relief on the cost of buildings. We are still a long way from that sort of major incentive.”
