The budget from the first Conservative government in nearly 20 years offers a number of interesting changes, some of which will be of great interest to our clients.
The Annual Investment Allowance (AIA) of £200,000 from January 2016 is seemingly good news for businesses looking to invest in capital equipment over the next few years. However, we offer caution on a couple of levels. It should be noted that the 100% allowance is only accelerated in the first year and from an accounting point of view needs to be counted back over the following years.
In addition, the allowance is only available on items that are viewed as ‘capital purchases’ i.e. they must be removable and reusable. As we all know whilst furniture and some aspects for the fitout are clearly capital items, much of the project is not, so therefore would not fall under this AIA.
Plus Finance is available to discuss the most tax efficient way to fund clients’ office relocation or refurbishment purchases, taking into account this new allowance. A combination of HP and lease rental can provide a very cost effective solution to budget restrictions and make the best of the tax saving opportunities.
Call us on 01494 783773 to discuss funding options for your office furniture and fitout project.