changes in the annual investment allowance

Businesses can claim an annual investment allowance – AIA - for capital expenditure incurred on most items of plant and machinery.  However, there is a planned reduction in the AIA - to £25,000 from 1 April 2012 (6 April for unincorporated businesses) and many businesses could have to wait over 25 years to benefit from a full tax relief on new plant.   

You should be aware of this change as it could have a huge impact on your businesses.  If you wish to purchase an item of plant please consider your business year end.  We are working with clients who periodically incur large capital expenditure, or are considering doing so.  It is vital that they choose the best timing of their purchase where possible.

Jo White
Tax Consultant
Email: jowhite@spofforths.co.uk
Tel: 01403 253 282