Since April 2008 when the FYA’s were replaced by a paltry £50,000 Annual Investment Allowance the treasury has changed almost yearly the AIA value. This year’s announcement INCREASED the yearly allowances available to £500,000!
I am pleased to see the Chancellor in this budget making a positive statement on this, which appears to be supported by many Businesses.
Within the Unlocking Business Investment part of today’s speech the chancellor confirmed:-
- The government is doubling the annual investment allowance (AIA) to £500,000 from April 2014 until the end of 2015. The increased AIA will mean that up to 4.9 million firms – 99.8% of businesses – will receive 100% up-front relief on their qualifying investment in plant and machinery.
- Capital allowances in Enterprise Zones – The government will extend the period in which enhanced capital allowances are available in Enterprise Zones by 3 years until 31 March 2020. (Finance Bill 2014)
- Enhanced Capital Allowance (ECA) for zero emission goods vehicles – The government will extend the ECA for zero emission goods vehicles to 31 March 2018.
- Business premises renovation allowance (BPRA) – Following a review of the BPRA, the government will make changes to simplify the scheme, make it more certain in its application and to reduce the risk of exploitation, with effect from April 2014. (Finance Bill 2014)
- Enterprise Zones are a key part of the government’s strategy for enabling growth in local areas. The government will continue to support Enterprise Zones to create even more new jobs and attract private investment to local areas. Availability of business rate discounts and Enhanced Capital Allowances will each be extended by 3 years as an incentive for new and expanding businesses to locate in Enterprise Zones.
- Enhanced Capital Allowances (ECA): energy-saving and water-efficient technologies – The list of designated energy-saving and water-efficient technologies qualifying for ECA will be updated during summer 2014, subject to state aid approval.
- Pilot Northern Ireland Enterprise Zone – The Northern Ireland Executive has set out its plans for a pilot Enterprise Zone near Coleraine, which the government will support by offering enhanced capital allowances to investors within that Zone. This is the first new Enterprise Zone in Northern Ireland, and is in line with the commitment the government and the Executive gave in the joint economic pact in 2013.
Drop me a line to talk more about this?
Thanks – Arthur