Category: Annual Investment Allowance

Annual investment allowances

From January 2019, businesses considering investing more than £200,000 in plant and machinery may benefit from a change to the capital allowances rules, which should allow them to obtain tax relief at a much earlier time. Broadly, business profits, after any adjustments for tax purposes (for example depreciation of fixed assets), are reduced by capital…


Annual investment allowance or writing down allowance?

The way in which relief for capital expenditure is given depends on the way in which the accounts are prepared. For companies, and for sole traders and partnerships not eligible to use the cash basis, accounts must be prepared using the traditional accruals basis. Under the accruals basis, a deduction is not permitted for capital…