Light shed on £500k tax relief
Having recently learned of a government HMRC incentive which benefits UK businesses investing in up to half a million pounds in plant and machinery until the end of 2015, Pacepacker Services ran a quick customer poll to gauge awareness. Asking customers if they were aware of this annual investment allowance (AIA), which is subject to 100% corporate income tax relief on qualifying plant and equipment, 90% of those polled responded ‘no’, with the majority wanting to know more.
The AIA has been increased in stages in the last few years. From 1 April 2014, it was increased by HMRC from £250,000 to £500,000. The original limit was £25,000, and this is what it could revert back to on 1 January 2016, although tax pundits say it could be higher and may be reviewed by the chancellor in his autumn statement.
With confidence in UK manufacturing and the wider economy continuing to build, missing out on this tax incentive could be a significant financial oversight, especially for companies that are looking to make big investments in new machinery in the next few years.
“We are by no means financial experts,” says Dennis Allison, Pacepacker’s managing director, “but for any customer considering investing in plant, we are flagging this incentive and suggesting they speak urgently to their accountant or financial adviser so that they can make an informed investment decision.”