AIA is dropping on 1st January 2016
We are letting all our clients know that there is a proposed drop in AIA rates (Tax allowable depreciation) from 1st January 2016.
Up to 31st December 2015 businesses can spend up to £500,000.00 p.a. on many capital assets such as plant and machinery and computers used in their business and get 100% tax relief in the year of purchase. From 1st January 2016 the £500,000.00 level is proposed to drop to £25,000.00.
If this drop is implemented it could impact on many businesses even if you are just looking to purchase a new van.
Timing of any future capital purchases should be considered now, to ensure valuable allowances are not lost.
Please call for some free advice on this and how it could affect your business.