Time to take advantage of annual investment allowance increase
If you are considering investing in new equipment or machinery for your business then now is the ideal time to do so, while generous tax reliefs are available.
Under changes which came into force on 1 January, the annual investment allowance (AIA) increased ten-fold, meaning that that businesses will benefit from 100 per cent tax relief on £250,000 of investment in eligible equipment for the next two years. The increase to £250,000 was announced by Chancellor George Osborne in his Autumn Statement.
This substantial increase in the allowance will come as good news to many small and medium-sized businesses as it will enable them to invest in new plant and machinery to help take their business forward.
However, this increase will only last for the next two years, so business owners wanting to take advantage of this generous tax relief may wish to consider bringing forward their capital expenditure while this allowance is at this higher level.
Business owners wanting to make the most of this capital allowance should seek professional advice as soon as possible to find out if they are eligible and, if so, ensure that any investment is as tax-efficient as possible.
For further information on how your business could benefit from the newly increased AIA, please contact us.