Tax Relief on Plant & Machinery

No, not necessarily. There are some things you should be aware of.

Firstly, clearly the equipment you purchase must be eligible for the Annual Investment Allowance (AIA). I would always encourage business owners to discuss their plans with an accountant first; before going ahead and making any significant purchases. This way, you should ensure that you are fully aware of the tax relief available and there’ll be no nasty surprises.

But secondly, and more importantly, the AIA available will depend on your year end and the timing of your purchases. The AIA has changed three times recently:

1. £100,000 up to and including 5^th April 2012 (unincorporated business)/ 31^st March 2012 (companies)
2. £25,000 up to and including 31^st December 2012 (irrespective of entity type)
3. £250,000 from 1^st January 2013 (irrespective of entity type)

Because there have been so many changes and because of the rules surrounding AIA, I would strongly recommend that you discuss your plans with your local TaxAssist Accountant, to ensure that you get as much tax relief as possible; as quickly as possible.

Date published 15 Jan 2013

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.