Sarah Bradford looks at how businesses can plan their capital expenditure to benefit from advantageous capital allowance claims.
To encourage businesses to invest following the pandemic, there are a number of time-limited reliefs available to those who incur their expenditure within the qualifying window. The time-limited reliefs take the form of an increased limit for the annual investment allowance and, for companies, a super-deduction and a 50% first-year allowance.
The deadline for incurring expenditure to benefit from the enhanced allowances is 31 March 2023. Companies also need to consider which claims are made in order to maximise the relief available to them.
Annual investment allowance
The annual investment limit (AIA) provides immediate relief for qualifying expenditure in the accounting period in which it is incurred, up to the available AIA.
