AIA has been increased to Â£250,000
In his Autumn Statement the Chancellor announced that the Annual Investment Allowance (AIA) would be increased to £250,000 from January 2013. This is good news for businesses investing in air conditioning upgrades.
AIA (Annual Investment Allowance) is designed for businesses investing in most plant or machinery, enabling them to claim full tax relief on up to £250,000 of the equipment expenditure in the tax year it is incurred.
The AIA is in effect an Enhanced Capital Allowance that works in the same way as the Energy Technologies List (ETL) however the equipment is NOT required to be on the ETL to quality for the AIA.
There are many benefits of the AIA such as;
- Helping your customers gain a useful tax break on their investment
- Making your customers aware can help to accelerate their decision making process
- Who the AIA is available to?
- Any individual carrying on a qualifying activity (this includes trades, professions, vocations, ordinary property businesses and individuals having an employment or office)
- Any partnership consisting only of individuals
- Any company (subject to certain limitations)
To claim for AIA is as simple as ticking the Enhanced Capital Allowance box on a tax return form and including details of the plant or machinery that was invested in.
If you would like further information please view the HM Treasury document.
Alternatively you can contact us on 0845 319 180.
AIA is ideal for off-setting costs for projects such as R-22 replacement