Drummond Laurie Chartered AccountantsA temporary increase in the Annual Investment Allowance (AIA) up to £1,000,000 for a two-year period was recently announced by HMRC.  The increase is applicable from 1 January 2019 to 31 December 2020, at which point it will reduce back to £200,000.  The timing of the change means that for businesses which do not have a 31 December year end, a hybrid level of AIA will initially be available.  Below is a note of the AIA available based on the year end date of the business in 2019:

The significant size of the temporary increase means that, more than ever, it is important to consider the timing of any purchase of assets to ensure that maximum tax relief can be obtained.

For further advice on AIA, or any aspects of capital allowances, please contact us via e-mail on adviser@drummondlaurie.co.uk or phone 01324 441250.