I have been reading the outcome of the Autumn Statement and I am aware that the Annual Investment Allowance is being increased to £250,000 from January 2013. Does that mean that I can spend £250,000 on plant and machinery in January and receive tax relief on the whole amount?p
No, not necessarily. There are some things you should be aware of.
Firstly, clearly the equipment you purchase must be eligible for the Annual Investment Allowance (AIA). I would always encourage business owners to discuss their plans with an accountant first; before going ahead and making any significant purchases. This way, you should ensure that you are fully aware of the tax relief available and there’ll be no nasty surprises.
But secondly, and more importantly, the AIA available will depend on your year end and the timing of your purchases. The AIA has changed three times recently:
Because there have been so many changes and because of the rules surrounding AIA, I would strongly recommend that you discuss your plans with your local TaxAssist Accountant, to ensure that you get as much tax relief as possible; as quickly as possible.
By Jo Nockels
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