We are into 2016 and if you haven’t already, it’s time to think seriously about this year’s capital expenditure plans. The annual investment allowance (AIA) drops from £500,000 to £200,000 from the start of 2016 – if you haven’t factored this into your plans for 2016 talk to us. We can help you to arrange your asset finance plans in the best way for your business.
The AIA helps businesses to write off the cost of certain plant and machinery they purchase against profits in the year of purchase. This brings quicker tax relief against expenditure than the main alternative, which would be to spread the relief of purchases against tax over several years.
If you spend less than £200,000 on plant and machinery per year, this change may not be relevant to you if your accounting year ends in December. If your accounting year continues into 2016, you will need to be careful. Phone us direct on 01928 739 712 and speak to one of our experienced team.
For more information about the AIA visit the government website here.