100% Tax Allowance is Only Short Term

Currently, purchases of qualifying plant and equipment can be written off against your taxable profits.

One method for obtaining tax relief is to utilise the Annual Investment Allowance (AIA) which for the 2011-12 tax year allows a write-off of upto £100,000 worth of qualifying expenditure.

However, from April 2012 the AIA will be reduced to £25,000.

If you are considering replacing old equipment or buying new qualifying equipment in the next 12 months, the timing of your purchase will likely have a big impact on your tax position.

Contact BDM for more details.