Tax Tips - Capital Expenditure

These tips are guidance only and do not constitute specific advice. Detailed professional advice should be taken before action or refraining from action.

Bringing forward planned future capital expenditure to a day before the end of your current accounts financial year end will secure a full years capital allowances on the cost of the expenditure, and will reduce taxable profits accordingly.

A new annual investment allowance enabling allowances of up to £50,000 was introduced from April 2008, and continued to be available for 2009/2010. With effect from 1st April this limit was extended to £100,000 per annum. Careful consideration should be used when deciding whether to make major purchases and the timing of these. Further information can be found in our newsletters.