The changes which are being introduced will apply with effect from today and are as follows. For the seven and ten year schemes, any unused capital allowances carried forward beyond the seven or ten year end dates will be lost. This will apply both to circumstances where the end date has yet to be reached and those where the date is already passed. In the latter case, the carried forward amount will be lost immediately. Where the capital allowance is given over a period greater than ten years, this period is now being revised downwards to seven years from the year it was first claimed. The consequences of this are that, in circumstances where this seven year period has already elapsed, any capital allowances which have yet to be given, as well as those carried forward in the current year, will be lost. Where the seven year period has not elapsed, the aggregate of capital allowances not yet given by that time will be reduced by 20% and given over the balance of the seven year period. In all cases, any capital allowances carried forward beyond the seven-year period will be lost.

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