Annual investment allowance increased to £1 million
Post Author:
Anne Melville
Date Posted:
November 27, 2018
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The Annual Investment Allowance (AIA), which provides businesses with a 100% write off against profits when they acquire qualifying plant and machinery, has been temporarily increased from £200,000 to £1 million for two years from 1 January 2019.
This will mean that the timing of expenditure will be critical and it may be advantageous to wait until after 1 January 2019 to get the full benefit of this change in certain circumstances. Please speak to us in advance of making any such expenditure so that we can assist you to maximise the tax relief available.
The current enhanced capital allowance for energy efficient plant will be abolished from April 2020.
The writing down allowance for special rate pool equipment, broadly long-life assets and fixtures in buildings, will be reduced from 8% to 6% from April 2019.
