Tel: 01736 795753
This email address is being protected from spambots. You need JavaScript enabled to view it.

Investing in new equipment for your business?

Source: HM Revenue & Customs | | 03/07/2018

The Annual Investment Allowance (AIA) provides 100% first year tax relief for qualifying expenditure on plant and machinery. It can be claimed 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 was permanently set at £200,000 for all qualifying expenditure on or after 1 January 2016. The limit is a generous allowance and should cover the annual capital expenditure spend of many small and medium sized businesses. The allowance is available for most assets 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.

Planning notes

Sole traders should be careful not to claim AIA at a level that would reduce their taxable income below the amount covered by their personal tax allowance.

The timing of a purchase should also be considered to ensure that, where possible, the purchase of qualifying equipment is made in the most tax effective tax year. Please call if you are considering a significant outlay for new equipment and we will help you crunch the numbers.



Search Archive


Latest News

Could you claim expenses and an early tax refund?
04/12/2018 - More...
HMRC is reminding employees that they may be able to claim a tax rebate if they have incurred

X-factor VAT bonus
04/12/2018 - More...
The Chancellor, Philip Hammond has announced that the government will waive the VAT equivalent on

Employing someone to work in your home
04/12/2018 - More...
When you employ someone to work in your home, it is your responsibility to ensure you meet the

Search

Our Address

Greenwood Wilson
The Old School
The Stennack
St Ives
Cornwall
TR26 1QU

Contact Us

tel: 01736 795753
fax: 01736 798642
This email address is being protected from spambots. You need JavaScript enabled to view it.

Newsletter

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

» Sign up for the Newsletter
» Login