Annual Investment Allowance
Discussion
Hoping theres and accountant on here or someone who knows.
Since the recent end of the 130% super deduction I know rules have changed.
My question is, with the new AIA, does plant and machinery have to be new to receive the 100% benefit? Looking to buy a £200k item of plant and I'm told the benefit is only 18% due to being used? Another forum several posters say thats wrong??
Since the recent end of the 130% super deduction I know rules have changed.
My question is, with the new AIA, does plant and machinery have to be new to receive the 100% benefit? Looking to buy a £200k item of plant and I'm told the benefit is only 18% due to being used? Another forum several posters say thats wrong??
You are confusing two different allowances.
The new allowance you referred to is for spend on new plant and machinery and is an uncapped 100% revenue deduction. It excludes certain expenditure such as cars, special rate pool items (50% only for them), etc.
The Annual Investment Allowance is a different allowance - giving a 100% deduction on up to £1m of expenditure and can be used against special rate pool items and second hand additions.
The new allowance you referred to is for spend on new plant and machinery and is an uncapped 100% revenue deduction. It excludes certain expenditure such as cars, special rate pool items (50% only for them), etc.
The Annual Investment Allowance is a different allowance - giving a 100% deduction on up to £1m of expenditure and can be used against special rate pool items and second hand additions.
Yep TNJ is right.
The new first year allowance ('full expensing') is a replacement for the super-deduction, but the Annual Investment Allowance hasn't gone away. The new FYA is unlimited whereas AIA has a limit of £1m. There are a few other minor differences - such as second-hand assets being ineligible for full expensing.
The new first year allowance ('full expensing') is a replacement for the super-deduction, but the Annual Investment Allowance hasn't gone away. The new FYA is unlimited whereas AIA has a limit of £1m. There are a few other minor differences - such as second-hand assets being ineligible for full expensing.
Thanks for the replies. I took my accountant to task on this today and he admitted he had made a mistake and misled me. He has now clarified the situation which correlates with above replies.
You know when you read stuff on the internet, you can't always take it as gospel and you also expect when you're paying a professional for advice they tell you the correct info.
Thanks for this, I'm now pressing ahead with purchase of used plant and machinery which should offset about £50k of tax, so worth starting this thread.
Thanks Pistonheads!
You know when you read stuff on the internet, you can't always take it as gospel and you also expect when you're paying a professional for advice they tell you the correct info.
Thanks for this, I'm now pressing ahead with purchase of used plant and machinery which should offset about £50k of tax, so worth starting this thread.
Thanks Pistonheads!
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