Annual Investment Allowance is reduced on 1st January 2016 to £200k

Date: 26th January 2016
Author: Mathew Tattum
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Roger Hannah & Co advises that you can now only claim a maximum of £200k AIA on plant and machinery, including fixtures and fittings + integral features that is identified within a commercial property within the same year of acquisition.

Historical changes to the AIA

The AIA has changed 4 times since 2008 and is due to change again to £200,000 on 1 January 2016.
If the AIA changed in the period you’re claiming for, you need to adjust your allowance.
Sole traders/partners Limited companies AIA

6 April 2014 - 31 December 2015    1 April 2014 - 31 December 2015    £500,000
1 January 2013 - 5 April 2014    1 January 2013 - 31 March 2014    £250,000
6 April 2012 - 31 December 2012    1 April 2012 - 31 December 2012    £25,000
6 April 2010 - 5 April 2012    1 April 2010 - 31 March 2012    £100,000
6 April 2008 - 5 April 2010    1 April 2008 - 31 March 2010    £50,000

You get a new allowance for each accounting period.

When can you claim AIA?

You can only claim AIA in the period you bought the item.
The date you purchased the property is:
•    when you signed the contract, if payment is due within less than 4 months
•    when payment’s due, if it’s due more than 4 months later

If you don’t want to claim the full cost, eg you have low profits, you can claim part of the cost as AIA and part using writing down allowances. You can do this at any time as long as you still own the item. If your business closes, you can’t claim AIA for items bought in the final accounting period.

For a free consultation to understand how much hidden Tax relief could be identified within your commercial property, contact Roger Hannah & Co today, the Capital Allowance Experts. No win no fee policy. 0161 429 1662 mathewtattum@roger-hannah.co.uk

 

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Mathew George Tattum BA (Hons) CE Business Development & Marketing Manager
Manchester Office