The annual investment allowance (AIA) allows businesses to get 100% tax relief for their qualifying capital expenditure. This includes plant and machinery, fixtures and fittings, computer equipment, lorries, vans and trucks.
The allowance is currently £200,000 per year and with effect from 1 January 2019 it will be temporarily increased to £1 million. The increase will apply to expenditure incurred from 1 January 2019 to 31 December 2020.
As the increase applies for a specific period of time, it is important that businesses plan carefully the timing of any significant capital expenditure especially in the accounting period which spans the 31 December 2020.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.