MV Asset Finance - Above & Beyond Your Expectation
+44 (0) 1236 280 290 [email protected]
Ninian Road Airdrie, ML6 9SE
9:00 AM - 5:00 PM Monday to Friday

Annual Investment Allowance

Announced in Philip Hammond’s Budget of 29th October 2018 the measure will provide significantly faster tax relief for plant and machinery investments between £200,000 (current cap) and £1 million, helping businesses to invest and grow. Capped at £1 million it starts from January 2019 and lasts for a period of 2 years when it will revert back to £200,000 p.a.

In effect the total cost of the plant/ machinery purchase can be offset against that company’s taxable profit for the year. In effect this could result in a saving of 19% (current corporation tax rate) on any plant/ machinery acquisitions.

Examples of Qualifying Expenditure

‘Plant or machinery’ covers almost every sort of asset a person may buy for the purposes of his/her business. Really the only business assets not covered are land, buildings and cars (which are excluded by one of the ‘general exclusions’). Typical examples of plant or machinery include:

  • Vans, lorries, trucks, forklifts, crane, diggers and other construction plant.
  • Manufacturing machinery, waste/ recycling equipment, garage equipment.
  • Computers and all kinds of office furniture and equipment.
  • Other building fixtures, such as shop fittings, security systems, industrial racking, kitchen and bathroom fittings.
  • All kinds of business machines such as lathes, tooling mach ines and printing presses.
  • Tractors, combine harvesters and other agricultural machinery.
  • Computerised /computer aided machinery, including robotic machines.