Upcoming Changes to the Annual Investment Allowance (AIA)

Posted on 2nd December 2015 by Streets -  What's trending?

Image to represent 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.

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