Businesses investing more than £25,000 in plant and machinery – take note


The annual investment allowance (AIA) falls from £500,000 to £200,000 for companies investing after 1st January 2016.

The maximum amount of the AIA was temporarily increased from April 2014 until 31 December 2015 after which it would have returned to £25,000. This measure permanently increases the amount of the AIA to £200,000 for all qualifying investment in plant and machinery made on or after 1 January 2016.

This measure is designed to encourage investment by providing a permanent generous incentive to invest in plant and machinery and giving certainty to businesses planning to invest.

Please contact us on 0845 9000 691 if you would like to discuss this further or to understand the impact on your business.

Alternatively you can find full information on HMRC’s website here