The UK Office of Tax Simplification (OTS) has issued its review report on replacing current capital allowances for tangible fixed assets with a system based on using the deprecation information in business accounts. The review was conducted as part of the OTS work on simplifying the computation of corporation tax. While changing to accounting depreciation would provide simplification benefits, the report finds that the costs of such a change would be disproportionate to the actual benefits and therefore such a change is not supported. Instead, improvements should be made to the current system, including a possible expansion of the scope...