Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

It's all about timing

18 August 2015 / Ray Chidell
Issue: 4514 / Categories: Comment & Analysis , Business , Investments
Effects of the latest changes to the annual investment allowance.
  • The maximum level of AIA will fall from January 2016.
  • The changes can already have an impact for expenditure incurred now.
  • They can affect businesses with low levels of capital expenditure (even under £20 000).
  • The timing of expenditure on plant or machinery over the coming months can make a huge difference to the AIAs available.
The annual investment allowance (AIA) is a welcome mechanism for accelerating tax relief for many businesses. It also provides genuine simplification in that most expenditure on plant and machinery can be written off for tax purposes at the outset rather than requiring computations to be carried forward indefinitely.
The exclusion of cars from the allowances lessens the degree of simplification but arguably there...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon