Annual Investment Allowance

jewels.p

Hi,

Can someone please advise me. We are currently looking to replace a lot of production equipment in our Factory i.e Mixing Tanks and are wondering if we can claim the current AIA of up to £200,000 on this? We have been told by a Chartered Accountant that we might not be able to claim AIA as these tanks are replacements but I don't understand this as it is equipment needed for our business or does it come under Fixtures & Fittings?

I would be grateful of any advice on this.

Thanks

Anne Boleyn

Hi

I believe the AIA was reduced to £25K for purchases after 1/6 April 2012. Is it possible to stagger the purchases over a few years? It's possible that the AIA may be raised in subsequent budgets.

You can still claim writing down allowance at 18% although this obviously isn't as good. More experienced practitioners may be able to offer further help.

jewels.p

Hi Anne,

Thanks for that. The Government have increased the AIA to £250,000 for purchases after 1/1/13 until the end of 2014. I am just not sure if we can claim AIA on the new mixing tanks or not. Hopefully someone can advise.

:001_smile:

burg

It all comes down to whether the mixing tanks qualify as plant and machinery for CA purposes or not.

Plenty of info on what is or isn't here - http://www.hmrc.gov.uk/manuals/camanual/CA21000.htm

stevo5678

If they are not capital then they are revenue expenses. Either way you will end up with tax relief.