The Chancellor announced in his Autumn Statement that there would be a huge increase in the Annual Investment Allowance for expenditure incurred on or after 1 January 2013, from £25000 to £250000 for a period of two years. This is a massive uplift and will benefit many small and medium sized businesses.
As a result, if you are thinking of buying any plant and machinery before the end of the year and you have already spent more than £25000 this year, then waiting until 1 January will result in significant tax savings.
The Chancellor also revealed that the main corporation tax rate for the financial year 2014 will be reduced by a further 1% to 21% for large companies. As already announced, the main CT rate for financial year 2013 is 23% for large companies and the small profit rate for small companies is 20%.
If you would like more information on the Autumn Statement and what it will mean for your business then, please feel free to contact the team on 01733 371180.