Five of the key 2010 changes affecting capital allowances are as follows:
1. Annual Investment Allowance
For expenditure incurred on or after 1 April 2010 (companies) or 6 April 2010 (non-corporates) the maximum Annual Investment Allowance (‘AIA’) for expenditure on plant and machinery was doubled to £100 000.
Why it matters: Originally from April 2008 a new AIA gave an annual 100% capital allowance for the first (but not necessarily the earliest) £50 000 of investment in plant and machinery. This was a compliance simplification and tax relief acceleration measure that acted like a type of de minimis provision. The government believed it would benefit 95% of taxpayers who were understood to spend less than £50 000 a year on plant.
The increased AIA will provide valuable accelerated relief for many taxpayers. For chargeable periods straddling 1 or 6...
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Five of the key 2010 changes affecting capital allowances are as follows:
1. Annual Investment Allowance
For expenditure incurred on or after 1 April 2010 (companies) or 6 April 2010 (non-corporates) the maximum Annual Investment Allowance (‘AIA’) for expenditure on plant and machinery was doubled to £100 000.
Why it matters: Originally from April 2008 a new AIA gave an annual 100% capital allowance for the first (but not necessarily the earliest) £50 000 of investment in plant and machinery. This was a compliance simplification and tax relief acceleration measure that acted like a type of de minimis provision. The government believed it would benefit 95% of taxpayers who were understood to spend less than £50 000 a year on plant.
The increased AIA will provide valuable accelerated relief for many taxpayers. For chargeable periods straddling 1 or 6...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
