Tax incentives to invest in qualifying assets

Source: HM Revenue & Customs | | 06/12/2017

The Annual Investment Allowance (AIA) limit is a generous capital allowance that will more than cover the annual capital expenditure spend of many small and medium sized businesses. The AIA is a 100% upfront allowance that applies to qualifying expenditure up to a specified annual limit. The limit has been fixed at £200,000 since 1 January 2016.

The AIA can be claimed for qualifying expenditure on plant and machinery by an individual, partnership or company carrying on a trade, profession or vocation, a UK non-residential property business or a furnished holiday let. Partnerships or trusts with individuals and companies in the business structure do not qualify for the AIA.

The AIA is available for most plant and machinery purchased by a business, such as machines and tools, vans, lorries, diggers, office equipment, building fixtures and computers. The AIA does not apply to cars, items owned for another reason before you started using them in your business or to items given to you or your business.

Planning note

With the end of the tax year approaching, now is a good time for businesses to ensure that they make the most of the available capital allowances reliefs for the current tax year including claims for first year allowances and business cars.

If you intend to invest a significant amount before the end of your current trading year please call us to discuss strategy, so that we can ensure you make the most of reliefs available.



Accountancy service

“Are you feeling confused about how to comply with HMRC’s accountancy requirements?

Read more...

Your business

Your business

Are you a Start-up business? Are you a little confused about the different types of companies? 

Read more...

Virtual Director

Virtual Director

Are you looking to grow your business? A Virtual Financial Director can help you take your business to the next level.

Read more...

Xero

XERO

Ensure that your business has the edge over your competitors and incorporate Xero into your business, today!

Read more...

Latest News

Spring Statement 2018
07/12/2017 - More...
The Chancellor, Philip Hammond has announced that he will deliver his Spring

Finance Bill 2017-18 is published
06/12/2017 - More...
The Finance Bill 2017-18 was published on 1 December 2017 and runs to relatively

What happens to the 5p for a plastic bag?
06/12/2017 - More...
HM Treasury has published an interesting response to a Freedom of Information

Search News


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login