The government has published a technical note, which includes draft legislation and explanatory notes, on its 2007 Budget proposals for reforming the capital allowances regime.

The draft legislation, which is to form part of the Finance Bill 2008 and amend the Capital Allowances Act 2001, is broadly in line with the proposals in the government's July 2007 consultation document. There are, however, a few new developments. These include further anti-avoidance provisions for the annual investment allowance and the withdrawal of enterprise zone allowances.

The government is inviting comments on the draft legislation to be submitted by 15 February 2008.