From April 2012 Capital allowances, i.e tax relief, available on the purchase of plant and machinery are being reduced. Whilst many people are aware that the Annual Investment Allowance (AIA) will reduce from £100,000 to £25,000, not many people understand the full consequences. Our calculator below shows you what AIA is available to your business on purchases made before and after the start of the 2012/13 tax year.
Want to know your maximum claim for Annual Investment Allowance?
Please choose your trading status:
Trader
Company
Enter your year end date for
/
year end
Please note: When inputting your year-end date, please use the pop-up calendar to select the date (and do not type in the date directly).
Maximum AIA available to
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Maximum AIA available from
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AIA gives 100% relief on assets purchased, subject to a few caveats, and has been very valuable in funding investment and reducing clients tax bills. For those businesses with business year ends that fall on the tax year end, i.e 5 April for individuals/partnerships, and 31 March for companies, the relief will be £100,000 at 100% in 2011/12 and £25,000 at 100% in 2012/13.
For any business with a different year end however the amount of relief available on purchases before and after the new tax year starts will vary. Purchases made after the start of the 2012/13 tax year will attract significantly less AIA.
The AIA available in 2012/13, i.e. up to April 2012 cannot be carried forward, so to benefit from this your purchase must fall in the 2011/12 tax year.
Remember assets bought on hire purchase must be in use at the accounting year end.
