6th February 2015
Businesses planning to make capital acquisitions in the near future should bear in mind the change to the annual investment allowance (AIA) threshold. From 1 January 2016, the AIA ceiling will reduce to £25,000 per annum from £500,000 per annum.
This reduction would have a more profound impact especially for businesses making capital acquisitions above the reduced threshold. They should therefore consider alternatives such as bringing forward capital acquisitions, prioritising expenditure on integral features or leasing the capital asset where they can only be acquired post 2015. An added complication is where accounting periods straddles 2015 and 2016 which would proportionately reduce the thresholds.
If you are uncertain on how to plan your approach, please do not hesitate to contact us.