Businesses should consider making the most of the current £100,000 tax-free Annual Investment Allowance (A.I.A) before it reverts back to just £25,000!
The AIA is currently offering 100% tax relief on qualifying investments such as technology, machinery, furniture and business vehicles up to £100,000.
However, you need to invest soon as businesses have until 31 March 2012 to plan and complete any capital investments that are likely to exceed the £25,000 threshold you want maximum tax relief.
Although some tax relief will still be available on investments over £25,000 from April 2012, it will be less generous. Therefore businesses should consider bringing forward any capital investment plans to maximise the higher available tax relief in 2011-12. As always any investment must be based on commercial principles and not simply tax led.
For further information or advice on this topic please visit http://www.wardwilliams.co.uk/
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