Annual investment allowance

Graham Chase, Tax Partner, CMS

Businesses are already able to claim 100% allowances on most expenditure on plant and machinery up to an annual allowance of £50,000. From 1 April 2010 this limit will be doubled to £100,000. Groups of companies share a single allowance between them and this rule remains, as do restrictions on companies and qualifying activities under common control. Also, the general anti-avoidance rule remains so as  to prevent allowances where the main purpose or one of the main purposes of the arrangements is to obtain AIAs.

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