ANNUAL INVESTMENT ALLOWANCE INCREASED TO £500,000

The Annual Investment Allowance (AIA) provides a 100% tax write off for the cost of most plant and machinery acquired by businesses, a notable exception being motor cars. This allowance was  temporarily increased to £250,000 on 1 January 2013 and was due to reduce back down to just £25,000 on 1 January 2015.

The Chancellor has announced that the allowance will be increased to £500,000 per annum for expenditure incurred between 1 April 2014 and 31 December 2015 (the change takes effect from 6 April 2014 for unincorporated businesses).  Remember that the AIA is available for assets bought on hire purchase as well as those bought for cash. It can also be claimed in respect of fixtures and fittings within buildings. Contact us to help you maximise tax relief for capital expenditure, as the timing of expenditure can be critical.

0 Responses to “ANNUAL INVESTMENT ALLOWANCE INCREASED TO £500,000”


  • No Comments

Leave a Reply




Download the latest Balance Business Bitesize now!

Enter your e-mail and name now to learn how you can do the above

E-mail: 
Name:

Subscribe!