Changes to Capital Allowances
The Annual Investment Allowance enables companies or individuals to offset new expenditure on qualifying plant and machinery assets against profits to reduce the amounts of Corporation Tax or Income Tax payable. Since it came into effect on 1 April 2008, the amount of the Annual Investment Allowance has been £100,000 per annum, however with effect from the 1 April 2012 for Corporation Tax and 6 April 2012 for Income Tax, the amount of the Annual Investment Allowance has been reduced to £25,000.
If businesses are looking to invest in qualifying plant and machinery they should seek advice from their accountants prior to doing so to ensure that they are eligible and meet the qualification criteria. If this is the case, then NGI Finance can help them to find the right funding option for the purchase of the equipment and get it in place well before the deadline.