Annual Investment Allowance doubled to £500,000
Businesses looking to invest in new plant or machinery need to consider bringing forward their capital expenditure in order to take advantage of a generous doubling of tax relief available on their purchases.
In his Budget speech, Chancellor George Osborne doubled the annual investment allowance (AIA) to £500,000 with immediate affect, as well as extending the scheme to the end of 2015.
The Chancellor said that 99.8 per cent of businesses were eligible for 100 per cent tax relief on £500,000 of investment in eligible equipment until the end of next year.
This unexpected increase will be welcome news for many small and medium-sized businesses as it will enable them to make the investment they need in order to grow their business.
The scheme has also been extended by a further year, so this means more time to plan ahead to ensure that any purchases of plant and machinery for your business are done as tax efficiently as possible, making full use of this increased allowance.
Of course, the scheme will only run until the end of 2015, so business owners wanting to make the most of this generous allowance should consider bringing forward any planned purchases while this higher level is in place.
If you are unsure whether you are eligible for this scheme or how to go about claiming then it is best to seek professional advice at the earliest opportunity to ensure you do not miss out.
For further information, please contact Nigel Martin at the office.
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