The Treasury issued a consultation paper on changes to capital allowances – part of the package of reforms to business tax announced in Budget 2007. The consultation document outlines the package of reforms and seeks feedback from business on three new elements of the capital allowances regime: -   the annual investment allowance; -   the definition of 'integral fixtures' to be assigned to the 10% capital allowances pool; and -   cash payments for surrendered losses derived from enhanced capital allowances for environmentally beneficial investment. The consultation closes on 19 October 2007. It will be followed by further consultation...