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23 November 2011

ACT NOW: Annual Investment Allowance cut looms

 

Time is running out for business owners to take advantage of the £100,000 tax-free annual investment allowance for purchases of technology and machinery before it is cut to £25,000 next April.

 

The Government raised the investment allowance threshold during the recession to encourage businesses to invest in capital equipment. Investment has remained low – partly because of the shortage of bank lending.

 

Philip White, chief executive of Syscap, which provides IT finance and leasing, said companies should consider bringing forward any capital investment plans because the tax relief offered after April will be less generous and more complex to obtain. Although companies still have another five months to claim the higher relief, White said companies need to make decisions now to get investments made.

 

Source: FT 13.11.2011

 

*Article for guidance only. Professional advice should be obtained to ensure that all circumstances are assessed in providing a complete answer.