We are often asked by business owners if they can take advantage of Capital Allowances and, if so, how do they go about it.
Capital Allowances are a complicated area but one that can offer significant benefits to a business. They are particularly useful for SME manufacturers and businesses who need to buy new plant and machinery.
Typical items that qualify under HMRC rules include tractors, combine harvesters, lorries, vans, printing presses, tooling machines, machinery, turbines and office equipment.
From January 1 this year, the Annual Investment Allowance (AIA) was reduced from £500,000 to £200,000. This still means that businesses can claim a 100% allowance of up to £200,000 in the year that you buy it.
Despite the reduction, AIA remains an extremely valuable allowance and one that business owners should investigate wherever appropriate.
Peter Way-Rider, Tax Manager at Ellis & Co., said “This is something businesses really need to take advantage of wherever possible.”
For more information regarding Capital Allowances and how to apply, please contact Peter Way-Rider on 01244 343504.