Buy new equipment before 6 April
Your business year end, not 5 April, is relevant for capital allowances purposes. If however you are running a business and making up accounts to 31 March or 5 April you should consider buying plant and machinery to take advantage of the £1 million Annual Investment Allowance (AIA).
The AIA provides a 100% tax write off for equipment used in your business. This tax relief extends to fixtures and fittings within business premises such as electrical, water and heating systems. AIA does not apply to motor cars, however commercial vehicles such as vans, do qualify. Electric cars will qualify for the First Year Allowance (FYA) which provides 100% relief in year 1. You can claim 100% FYAs if you buy a new car that emits no more than 50g per km up to April 21. Note however that from April 2021 100% tax relief will only apply where the car is 100% electric.
For further information on the Annual Investment Allowance, please contact Helen Spalding on 023 8046 1234.