Articles tagged with: AIA

Annual Investment Allowance to Reduce to £25,000 in 2012

on Thursday, 12 January 2012.

If your business is investing more than £25,000 a year in plant or machinery, then this finance bill affects you

Plant_MachineryAs of April 2012, the maximum amount of annual investment allowance (AIA) reduces to £25,000. Currently, businesses can write off 100% of the cost of acquiring qualifying assets against their taxable profits up to an annual limit of £100,000.

The revisions to the measure will take effect from 1 April 2012 for businesses within the charge to Corporation Tax (CT), and 6 April 2012 for businesses within the charge to income tax.

Businesses that invest over £25,000 will continue to be eligible for plant and machinery writing-down allowances on expenditure not covered by the AIA.

Assets that can be written off in this way include plant and commercial vehicles, computers and other equipment, however, cars do not qualify.

Things to consider prior to April 6th:

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