Temporary increase to the Annual Investment Allowance

After having been reduced to £25,000 in April 2012, the Annual Investment Allowance –the amount on which you can claim 100% Capital Allowances – has been increased to £250,000 with effect from 01 January 2013 for a temporary two year period.

This means that the amount you can spend on qualifying assets and receive full tax relief is now considerably higher.

If you are planning on purchasing new assets, please contact us to discuss the best time to do so, as the amount of AIA you are entitled to will depend on your accounting year, and buying at the wrong time could be very costly.