Bristol-based Chartered Accountants Urge Haulage And Transport Firms To Exploit Enhanced Capital Allowances
Bristol-based chartered accountants Whyatt Pakeman Partners are urging hauliers and transport firms to take advantage of new enhanced capital allowances.
Introduced in 2008, the Annual Investment Allowance (AIA) enables businesses to claim 100 percent tax relief on qualifying expenditure on plant and machinery in the year of purchase.
From 1st January 2013 this valuable allowance was increased to £250,000 for two years, providing a significant opportunity for businesses looking to invest in new equipment.
However, there are pitfalls. Businesses with chargeable periods spanning the rate change need to take into account the complex transitional rules, which do not work as many expect them to.
Tracy Hall, transport finance expert at Whyatt Pakeman says businesses with significant cash reserves or finance should make best use of this temporary increase in the AIA.
Tracy said: “This measure supports investment by increasing the AIA limit on qualifying expenditure that effectively receives 100% relief from £25,000 to £250,000.
“Hauliers and transport firms looking to invest in new plant or machinery should take advantage of this two year additional capital allowances relief.
“If firms were planning expenditure they should consider bringing it forward to the next financial year in light of this relief now available.”