Your business year end, not 5th April, is relevant for capital allowances purposes. However, if you are running a business and making up accounts to 31st March or 5th April, you should consider buying plant and machinery to take advantage of the Annual Investment Allowance (AIA). Read more to find out how you could be entitled to tax relief.
The AIA was increased from £200,000 to £1 million on 1st January 2019, so the allowance for year ended 31st March 2019 would be £400,000, not the full £1 million (£200,000 x 9/12 plus £1 million x 3/12).
The AIA provides a 100% tax write off for equipment used in your business. This tax relief extends to fixtures and fittings within business premises such as electrical, water and heating systems. AIA does not apply to motor cars but there is a special 100% tax relief if you buy a new car that emits no more than 50g CO2 per kilometer.
Want to find out how to claim tax relief on plant and machinery purchases?
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