AIA on borrowed time
The current £250k Annual Investment Allowance, giving your company 100% tax relief on the purchase of capital equipment, is due to come to an end on 31 December 2014 – scarily less than 10 months away. Beyond then, the AIA is due to drop back to just £25k per annum. So, if you’re planning on any significant capital purchases in excess of £25k, it may be better to spend before the end of the current calendar year. In fact, it’s a general tax-panning point for companies to get the capital expenditure incurred before the end of their financial year, so maybe now is the time to start planning.