From January 2019 the Annual Investment Allowance (AIA) will have a temporary two year increase from £200,000 to £1,000,000 per financial year.
This allows businesses to deduct the full value of qualifying assets from profits before tax. The full tax relief is received in the year assets are purchased rather than over several years, therefore assisting cash flow.
This measure will provide significantly faster tax relief for qualifying investments up to £1 million, helping businesses to invest and grow.
The increase in AIA will apply to qualifying expenditure on equipment, machinery and other assets a business needs from 1st January 2019 (dependent on a businesses chargeable period).
For more information on this allowance from HM Revenue & Customs, refer to their website: www.gov.uk
Close Brothers Business Finance offer a range of flexible finance options including Hire Purchase, Leasing and Refinance, enabling you to purchase assets and grow your business.