Maximising your Tax Relief on Capital Expenditure

With the reduction in the Annual Investment Allowance from £100,000 to £25,000 coming in to force with effect from 1 April 2012 for companies and 6 April 2012 for sole traders and partnerships, it is important to plan your capital expenditure to ensure maximum tax relief is received as soon as possible.

If you are planning on purchasing any large capital items, to ensure the full tax relief will be available please let us know the expected date of purchase and the amount it will cost, and we can then calculate the relief you will obtain.

As always we would recommend you buy before the end of your accounting period to ensure that the tax relief can be claimed as early as possible but if you are buying in the accounts year that straddles the end of the tax year, a higher Annual Investment Allowance can be claimed if you purchase before the 31 March 2012.

If you are thinking of purchasing any large capital items and wish to speak to our team for guidance beforehand, please do not hesitate to contact our tax team.