2012 sees the reduction in the Annual Investment Allowance (AIA), the generous tax relief available on the purchase of assets. From April 2012, the concession reduces from £100,000 to £25,000. We highlighted this in our blog from May 2011. However, we thought we would describe a scenario to outline the importance of getting the timing …
When a business invests in equipment or machinery, it receives tax relief through capital allowances. Currently, they benefit from the Annual Investment Allowance (AIA), which gives 100% tax relief for ‘plant and machinery’ investments. The 100% relief is currently capped at £100,000. However, this drops to £25,000 with effect from April 2012. Any expenditure over …