If you’re a company, partnership or sole trader, you can deduct 100% of your qualifying plant and machinery expenditure against your pre-tax profits with the Annual Investment Allowance (AIA).
The AIA is available for most plant and machinery expenditure. This includes machines, office equipment, certain building fixtures, vans and lorries. However, certain expenditure such as cars, buildings and land do not qualify.
The Chancellor announced during Budget 2015 that the allowance will be reviewed at Autumn Statement 2015, disappointing some business leaders who wanted to see an extension to the current £500,000 allowance. The AIA limit is scheduled to fall to £25,000 after 31 December 2015.
However, although its future remains uncertain, businesses still have at least 7 months to take advantage of the current allowance.
We can help you take advantage of capital allowances. Contact John Elliott for more information.