26 June 2014    |    Taxation

Annual Investment Allowance

HMRC  have recently issued an employer education email about the Annual Investment Allowance (“AIA”), which we think clearly and simply outlines the availability of AIA and most of the conditions.  It’s worth reprinting in full, just for the simplicity.

Hello Employer,

Is your business buying tools and equipment?

If you’re running your own business, buying tools and machinery that you need to carry out your work, the investment can qualify for tax relief.

This tax relief can lower your tax bill, and means you pay less tax on your profits.

This is known as your ‘Annual Investment Allowance’ (AIA) or capital allowance, and there is a limit to how much you can claim.

Plant and machineryFrom April 2014 the AIA has been increased to £500,000, and will remain at this rate until December 2015.

This means that you will be able to spend up to £500,000 on business-related expenses in you accounts.

Most business structures qualify provided they meet certain conditions.

So whether you are a limited company, sole trader or partnership, now is the time to take advantage if you are thinking of making investments.

Find out more about how your business can benefit at: http://www.hmrc.gov.uk/capital-allowances/plant.htm#3

Of course, there can be much more to AIA than this, and if you have specific questions, please do get in touch with us.


The information provided is for general information purposes only.

Legislation and details may have changed since this was written.  The text may not include all matters that are relevant to your individual situation.

You should not make decisions, or refrain from making decisions, without taking further professional advice about your specific circumstances.

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