Investing in capital expenditure? - Current allowance to cease 31 Dec 2015 - Act now!
Businesses investing in machinery or buildings currently enjoy a very generous allowance of 100% deduction against their tax bill but this is set to change.
From 1 January 2016, the limit for the 100% relief reduces from the current £500,000 to £200,000.
In addition, the 'accounting year end' of a company could cause the current £500,000 limit to be reduced - if for example, a company with a year end 30 June 2016 invested in August 2015, its 100% tax free limit would be reduced from £500,000 to £262,000.
Any business that is intending to spend on machinery or buildings for the remainder of 2015 or even early 2016 is strongly advised to plan now to ensure they do not lose.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.