Capital Allowances changes from 1 April 2012

The Finance Act 2011 provides that from April 2012 there is  a reduction in rate of writing down allowance from 20% to 18% for general pool.

The Annual Investment Allowance (AIA) is being reduced from £100,000 to £25,000. The rate will be pro-rated for periods which straddle 1 April 2012 as it is in 2010.

Careful planning may be required in the run up to the reduction.Businesses planning their caopital expenditure should ensure, where possible, that their expenditure on plant maximises the 100% AIA.

Should you want more information, please contact Michael Fagelman on 01329 821900.

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