Buy new equipment before 6 April?

Your business year end, not 5 April, is relevant for capital allowances purposes. If, however, you are running a business and making up accounts to 31 March or 5 April, you should consider buying plant and machinery to take advantage of the Annual Investment Allowance (AIA).

Note that the AIA was increased from £200,000 to £1 million on 1 January 2019, so the allowance for year ended 31 March 2019 would be £400,000, not the full £1 million (£200,000 x 9/12 plus £1 million x 3/12).

The AIA provides a 100 per cent tax write off for equipment used in your business. This tax relief extends to fixtures and fittings within business premises such as electrical, water and heating systems.

AIA does not apply to motor cars but there is a special 100 per cent tax relief if you buy a new car that emits no more than 50g CO2 per kilometer.

Our diverse team of tax professionals is committed to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to lawfully exploit tax savings is made known to you, restructuring your affairs in a tax effective and efficient way.

For more information, please contact your usual Beavis Morgan Partner.