Advance warning on the Annual Investment Allowance (AIA)
The AIA, that gives 100% relief on qualifying capital spend, is currently capped at £250,000. However, from 1 January 2015 the maximum amount will revert back to £25,000. Where an accounting period straddles this date, an apportionment will be required.
Where the AIA limit is exceeded, the capital allowances available will be much lower, currently a maximum of 18% p.a. but potentially only 8% p.a., dependent on the type of asset.
Timing of capital spend this year will be important.
Date: 24th February, 2014
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