Annual Investment Allowance

The recent increase to £250,000 in the Annual Investment Allowance is without doubt a good thing. This allowance lets businesses to claim a 100% deduction for qualifying capital expenditure on most equipment, plant and machinery.

Groups of companies and many companies under common control  have to divide the allowance up between them.

However the Chancellor appears to unable to resist making changes to this particular allowance. Until April 2012 it was £100,000 then dropping to £25,000 before increasing to the current £250,000 on 1 January 2013, and the transitional rules are fiendish. In summary though, businesses whose year-end falls in the early part of 2013 will only benefit from a part of the increased allowance, and may actually be better of delaying significant capital expenditure into their next accounting period, which is unusual. If you are considering significant capital expenditure (or can still affect the timing of current planned expenditure) and want to maximise the available reliefs you should contact us.

Annual Investment Allowance

The recent increase to £250,000 in the Annual Investment Allowance is without doubt a good thing. This allowance lets businesses to claim a 100% deduction for qualifying capital expenditure on most equipment, plant and machinery.

Groups of companies and many companies under common control  have to divide the allowance up between them.

However the Chancellor appears to unable to resist making changes to this particular allowance. Until April 2012 it was £100,000 then dropping to £25,000 before increasing to the current £250,000 on 1 January 2013, and the transitional rules are fiendish. In summary though, businesses whose year-end falls in the early part of 2013 will only benefit from a part of the increased allowance, and may actually be better of delaying significant capital expenditure into their next accounting period, which is unusual. If you are considering significant capital expenditure (or can still affect the timing of current planned expenditure) and want to maximise the available reliefs you should contact us.