Annual Investment Allowance / Super-Deduction
Every business is entitled to receive full, up front tax relief on up to £1 million per year of expenditure on qualifying business plant and machinery, including commercial vehicles, fixtures, fittings and equipment/machinery. This temporarily high limit runs until 31 December 2021, when it is due to fall back to £200,000.
The interaction of the AIA with a business year end is not as straightforward as you might think, and can lead to some very strange results. We can help you to plan your capital investment in the business to ensure you obtain tax relief as quickly as possible.
We can also help you to maximise the benefit of the new Super-Deduction for new equipment announced at the Spring Budget 2021.