Annual Investment Allowance (AIA) increased limit, to remain
AIA has given businesses, that are investing in commercial property, the opportunity to claim tax relief against the total value of qualifying expenditure. As previously announced, the £1 million limit will be made permanent. Careful tax planning regarding the timing of new capital expenditure can take advantage of the £1m limit in two accounting periods.
Learn more about AIA.
Corporation tax rate increase to go ahead
Despite rumours of this being cancelled, it has now been confirmed that this is going ahead. The Corporation Tax rate for annual profits greater than £250,000 will increase to 25%. With marginal relief available for profits between £50,000 and £250,000. Companies making profits of £50,000 or less will continue to pay tax at the current rate of 19%. This will be put in place starting April 2023.
Super-deduction will expire on 31st March 2023 as originally planned.
Learn more about super-deduction.
What does our Claims Manager think of the Autumn Statement changes?
“The headline news was all about the increase in the Corporation Tax rate to 25%. However, many small businesses will not make profits of over £250k and will therefore not be subjected to the full tax increase. Keeping the AIA limit at £1m is good news and will hopefully continue to give some incentive for businesses to invest in capital expenditure, including property improvements.”
5 December 2023
Capital Allowances ManualCapital allowances play a significant role in taxation. Allowing businesses to claim deductions for the depreciation of their assets. Among these assets, plant and machinery are frequently mentioned. However, the term “plant and machinery” is not explicitly defined in tax law. It should also...
22 November 2023
Autumn Budget 2023: Changes to Capital AllowancesThe Autumn Budget of 2023 has arrived, and with it comes significant changes and developments the government has put in place. Chancellor Jeremy Hunt delivered the statement on Wednesday, 22 November 2023. For businesses and individuals alike, these adjustments in tax policies can have far-reaching implications.
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.