Annual Investment Allowance

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jewels.p
jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
in General accounting discussion
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

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  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉
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    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
    jewels.p Registered Posts: 1,774 Beyond epic contributor 🧙‍♂️
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    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
    burg Registered, Moderator Posts: 1,441 mod
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    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
    Regards,

    Burg
  • stevo5678
    stevo5678 Registered Posts: 325
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    If they are not capital then they are revenue expenses. Either way you will end up with tax relief.

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