Upcoming Changes to the Annual Investment Allowance (AIA)
For accounting periods that straddle 1 January 2016, the allowance will be pro-rated and restrictions will apply to expenditure falling after 1 January 2016 so it is important to consider the timing of expenditure.
For an accounting period ending on 31 March 2016 the maximum AIA will be £425,000, being 9/12 x £500,000 = £375,000 plus 3/12 x £200,000 = £50,000.
For expenditure incurred post 1 January 2016 the maximum AIA available will be £50,000 whereas the full £425,000 will be available for expenditure incurred before 1 January 2016.
No Advice
The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.
Information
The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.
Expert insight and news straight
to your inbox
Related Articles
Budget 2024: Changes to the Non-Dom Regime and their Implications
In the wake of the Budget 2024 announcements, significant changes to the UK's non-domiciled individual (non-dom) regime are on the horizon, with scheduled implementation for 6 April 2025. However, uncertainties loom, especially considering the potential shift in political power after the next General Election. While the outlined reforms ...
How do you avoid financial forecasting that ends up with rain instead of sunshine?
Financial forecasting can often feel like the weather forecast, financial predictions not always being as rosy as planned, or in many cases, as hoped - a bit like the weather whilst sunshine is predicted rain all too often can be the outcome.
Whilst many businesses will look to ...
Working Capital Cycle
The longer the working capital cycle, the more time it takes for your business to get a robust cash flow. It’s good practice for businesses to manage their cycle by looking at each step where possible. This could be by selling stock or product quicker, collecting monies owed ...
Share this article