Chris Holmes, Mark Ellis and James Egert (BDO) set out important current corporate and employer tax issues which in-house tax teams should now be addressing.
Capital allowances: how best to maximise allowances?
Annual investment allowance (AIA)
The 100% AIA amount for expenditure on plant and machinery (temporarily increased from £200 000 to £1m per annum between 1 January 2019 and 31 December 2020 and due to revert back to £200 000 from 1 January 2021) will now remain at £1m for a further year to 1 January 2022.
This extension is a welcome incentive to support and encourage businesses investing in plant and machinery particularly during this uncertain period. Businesses can now plan their capital expenditure over the next year to maximise the 100% tax relief available for qualifying expenditure.
It should be remembered that groups of companies are only entitled to one AIA between them ...
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Chris Holmes, Mark Ellis and James Egert (BDO) set out important current corporate and employer tax issues which in-house tax teams should now be addressing.
Capital allowances: how best to maximise allowances?
Annual investment allowance (AIA)
The 100% AIA amount for expenditure on plant and machinery (temporarily increased from £200 000 to £1m per annum between 1 January 2019 and 31 December 2020 and due to revert back to £200 000 from 1 January 2021) will now remain at £1m for a further year to 1 January 2022.
This extension is a welcome incentive to support and encourage businesses investing in plant and machinery particularly during this uncertain period. Businesses can now plan their capital expenditure over the next year to maximise the 100% tax relief available for qualifying expenditure.
It should be remembered that groups of companies are only entitled to one AIA between them ...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
