MORE WORKSHOP EQUIPMENT FOR LESS
Until 31 March 2023, businesses investing in qualifying assets will benefit from up to 130% first-year capital allowance.
This allows businesses to deduct the full value of qualifying assets from profits before tax. The full tax relief is received in the year assets are purchased rather than over several years, therefore reducing the tax liability.
This measure will provide significantly faster tax relief for qualifying investments up to £1 million, helping businesses to invest and grow.
For example, under the new rules: If taxable profits pre-investments are £200,000, and a business invests £100,000 in qualifying new vehicles, plant. or machinery, they will be entitled to claim in that year a capital allowance of £130,000, a saving of £112,000 compared to current rules.*
You can still ease your cashflow and take advantage of this scheme by financing the Asset via a Hire Purchase Agreement. The extension in AIA will apply to qualifying expenditure on vehicles, equipment, machinery, and other assets a business needs from 1 April 2021 (dependent on a business’s chargeable period).
* CLICK HERE For more information on this allowance from HM Revenue & Customs, refer to their website: www.gov.uk or contact your Accountant who can discuss your individual requirements with you.