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Glazers Chartered Accountants,
843 Finchley Road, London, NW11 8NA.
T: 020 8458 7427, F: 020 8458 8504
E: quality@glazers.co.uk
843 Finchley Road, London, NW11 8NA.
T: 020 8458 7427, F: 020 8458 8504
E: quality@glazers.co.uk
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NewsTax NewsMake the most of capital allowances
Tax News
Make the most of capital allowances
UK businesses have a few months left to make the most of a key tax benefit on capital investments.
From April 2012, the Annual Investment Allowance (AIA) – which allows businesses to deduct 100 per cent of the cost of plant and machinery expenditure from their taxable profits, up to the AIA limit – will be slashed from £100,000 to £25,000.
At the same time, the rate of ongoing tax relief – known as the writing down allowance – on spending above the AIA will also be cut, from 20 per cent to 18 per cent.
The writing down allowance will also be cut from 10 per cent to eight per cent for the special rate pool (which includes items such as heating and electrical systems and those with an expected life of at least 25 years, like lifts).
With time running out to claim the higher AIA, you may find it worthwhile seeking our advice on capital allowance claims by investing in or upgrading plant and machinery before April next year.
LINK: Capital allowances guidance
