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Capital Allowances - the new Annual Investment Allowance

The Government has recently published its response to consultations on changes to the way in which relief will be given for expenditure on plant and machinery.

This is just a brief reminder of the anomalies in 2008 of the new ‘annual investment allowance’ (AIA). This will be introduced in April to provide for a 100% allowance on the first £50,000 of expenditure on plant and machinery (other than cars) and replace the existing first-year allowances for small and medium-sized enterprises.

 

 

Date: 18th February, 2008
Author: Cathy Corns

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