Annual Investment Allowance – Capital Allowance

What Qualifies & Which Finance to Use

The Annual Investment Allowance enables nearly all businesses to reduce their tax bill by acquiring Equipment, Machinery, Vehicles, Plant and other business assets.

But timing is everything, and if you don’t act before the end of March 2012 then it will be too late. The Annual Investment Allowance can’t be carried forward so it really is a case of use it or lose it.

The current scheme allows for up to £100,000 of capital expenditure to be written off in the tax year of acquisition and includes the following items:

• vans, lorries, trucks, cranes and diggers (cars are specifically excluded)
• ‘integral features’ of a building or structure
• other building fixtures, such as shop fittings, kitchen and bathroom fittings
• all kinds of business machines, such as printing presses, lathes and tooling machines
• tractors, combine harvesters and other agricultural machinery
• computerised /computer aided machinery, including robotic machines
• wind turbines and fibre optic cabling.

Can you Finance the Assets?

The answer is yes, but if you’re planning to take advantage of the Annual Investment Allowance then you either need to pay cash or use a Hire Purchase agreement. Although Leasing has several advantages, in this case, assuming your primary objective is to reduce your tax bill, it isn’t the right solution and would prevent you from utilising the Annual Investment Allowance.

TeleLease provides Hire Purchase agreements on most items of equipment, vehicles and machinery so why not call us today for a no obligation quotation.