If your plans for 2012 will require a significant outlay on tools, IT, office equipment and furniture, computerised machinery, commercial vans, or integral building features such as electrical systems, you could get 100% relief on your corporation tax.
The Annual Investment Allowance currently offers a generous tax break for companies investing in plant and machinery up to the value of £100,000. It was pledged by Labour during their last election campaign, however from April 2012, the Coalition government will reduce the threshold to £25,000.
This leaves just 4 months to plan and complete any qualifying investments that are likely to exceed the £25,000 limit. There will be some exceptions to this amount, but the incentive will be less generous and more complex, so you should consider bringing forward any major plans.
After a few years of tighter budgets and lower funding levels, many companies are having to make do with outdated systems and equipment. We work with over 1,000 SMEs in and around Essex and East London, so we know that growth and investment are high on the agenda for several businesses, especially those gearing up to stay competitive.
Contrary to what the media might have us believe, there’s a great deal of positive business stories in this region and so incentives such as the current Annual Investment Allowance could save local firms thousands. To find out more, or to discuss your growth plans for 2012, please contact our Business Advisory Department.
