Capital Allowances

Capital Allowances

From: 1 January 2013 to April 2014 1 or 6 April 2014 to 31 December 2015 From 1 January 2016
Main rate pool: writing down allowance
18% 18% 18%
Special rate pool (long life assets, integral features): writing down allowance8% 8% 8%
Annual Investment Allowance (AIA) cap: £250,000 £500,000 £25,000

Expenditure within the AIA qualifies for 100% allowance in the year of purchase. The AIA cap was increased to £250,000 on 1 January 2013, and is doubled to £500,000 on 1 April 2014 for companies (6 April 2014 for unincorporated businesses).

This increase in the AIA cap will help businesses invest in equipment and fixtures (cars and buildings don't qualify), with 100% tax relief in the year of purchase. However, great care is needed to calculate the available AIA for accounting periods which straddle the various changes. The AIA cap is due to revert to £25,000 on 1 January 2016.


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Exel accountants is an accountancy firm based in Watford Hertfordshire. Exel accountants are a firm of qualified and experienced accountants specialising in providing accounting and taxation services to new and established businesses.

Contact

Exel Accountancy Ltd
66B, Sydney Road
Watford WD18 7QX
0192 351 7300
info@exelaccountancy.co.uk

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