| Lucrative Allowances Being Withdrawn |
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Chartered Accountants and Business Consultants Annual Investment Allowance (AIA) Currently relief is available for 100% of expenditure on qualifying plant and machinery up to £100000. This is changing to £25000 from 1st April 2012 for companies and 6th April 2012 for partnerships and sole traders. For businesses with accounting year ends straddling these dates, e.g. 30 April 2012, the maximum AIA will be calculated by time apportioning the old and new limits using the number of months in the accounting period before and after 1st and 6th April. To maximise allowances available to your business ensure that expenditure being considered on qualifying plant and machinery is made as soon as possible. Writing Down Allowance Currently relief is available at 20% on the balance of assets in the main capital allowances pool and at 10% on items in the special rate pool. From 1st April 2012 for companies and 6th April 2012 for partnerships and sole traders, the writing down allowances are changing to 18% and 8% respectively. Following HMRC’s recently announced consultation, from April 2013, the time limit for making retrospective claims for capital allowances on purchase, refurbishment or construction of commercial property is being reduced, possibly to one year. To ensure your business capital allowances claim is maximised, please contact Christina on 0141 643 9200 to discuss. |
Business News
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