Increased Capital Allowances Start 1 January 2019

9th January 2019 | Posted in: Agricultural, Allowances, Business Tax, Tax planning

As previously advised, a temporary increase in the Annual Investment Allowance (AIA) to £1 million for expenditure on plant and machinery took effect from 1 January 2019. However, transitional rules mean that the full amount will not necessarily apply to your business straight away.

For example, if your business year end is 30 June 2019, the maximum AIA available for this year will be £600,000 being 6/12 x the old £200,000 limit plus 6/12 x the new £1 million limit. The business will be entitled to the full new £1 million allowance for the following year to 30 June 2020.

Annual investment allowance increased to £1million

If you feel we could help you and would like to discuss any of the above, please contact Anne Melville BA CA on 0131 317 7377 or email to
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