With effect from 1st January 2013 the Annual Investment Allowance has been raised from £25,000 to £250,000 for a two year period.
This is obviously good news as it gives the farmer / businessman a potential way to mitigate taxation, but it should also be remembered that any trade in of machinery will more than likely come back into charge at the same rate as the AIA is given. Therefore taxable profits will probably be reduced by the ‘net of trade in figure’. To be sure please contact us so as to ascertain the current pool value of your Capital Allowances.
Good news, nethertheless.