Overview of the Annual Investment Allowance
The £1 Million annual investment allowance is here to stay. You can claim capital allowances when you buy assets that you keep to use in your business, for example:
- equipment
- machinery
- business vehicles, for example vans, lorries or cars
These are known as ‘plant and machinery’.
You can deduct some or all of the value of the item from your profits before you pay tax.
What are the changes to the Annual Investment Allowance?
The Government will continue to support business capital investment by keeping the level of the 100% Annual Investment Allowance (AIA) at £1 million.
This deduction is available to unincorporated businesses as well as limited companies if they invest in new or second-hand equipment.
We are, however, expecting the temporary 130% ‘super-deduction’ for company expenditure on qualifying new equipment to come to an end on 31 March 2023.
Need more information?
Do you need further guidance on the Annual Investment Allowance?We offer a wide range of services which are unique to your business! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.
Our fantastic team at A&C Chartered Accountants are here to help.
