The Government have been very generous in recent years in the availability of the Annual Investment Allowance (AIA) for small and medium businesses. For the majority of our clients the current limits are more than enough to allow them to claim a 100% tax deduction in the year of the expenditure.
The AIA is currently set at £500,000 per year from 6 April 2014 to 31 December 2015, at which point it will reduce to £25,000 – much less, but still a generous allowance. If you are planning to invest a significant amount on qualifying assets (which include vans), it is essential to consider these changes to ensure that you use the maximum available relief.
One word of caution, the reduction in the allowance, and the way in which their availability is calculated, means that in the three months ended 31 March 2016, there is a maximum claim in that three month period amounting to £6,250.
Please contact us further for more information on this. We can also offer assistance with financial projections which would be very useful when planning your capital investment programme.