Posted on 19 March 2013
After various changes to the Annual Investment Allowance (AIA), the 2012 Autumn Statement brought news that it was increasing from £25,000 to £250,000 for a temporary period of 2 years from January 2013.
What is AIA?
AIA is a capital allowance you can deduct when calculating your business taxes. The changes have been designed by the government to stimulate growth in the economy by providing an incentive for businesses to invest in plant or machinery.
What does this mean for me?
The changes in AIA will reduce the cost of investing in new plant and machinery to help drive your business forward.
The tenfold increase means 100% tax relief can be claimed on your capital expenditure in eligible equipment of up to £250,000 - so it’s an excellent opportunity to consider the timing of any future capital expenditure to make your investments as tax efficient as possible!
We can help
The timing of any capital expenditure needs to be planned carefully around your business’ year end and its profitability, and as not all assets may qualify we would recommend seeking advice from one of our tax experts to really make the most of the allowances.
The changes in AIA should give a huge boost for those who aspire to invest for growth. We’re dedicated to helping your business flourish and our team is on hand to help strategically plan your tax affairs.
For further information on AIA or any other tax reliefs, please contact one of our tax experts by clicking here