Budget 2010 – AIA increased to £100,000
The Chancellor has announced an increase in the amount of the annual investment allowance (AIA) for businesses investing in plant and machinery. The AIA will increase to £100,000 (from £50,000). The increase will be effective from 1 April 2010 for businesses liable to corporation tax and from 6 April 2010 for businesses liable to income tax. Businesses that have a chargeable period which spans the introduction of the new limits will be able to calculate a pro-rated annual investment allowance.
The allowance is available to individuals carrying on a qualifying activity, certain partnerships and companies.
The Government will also introduce anti-avoidance legislation effective from 24 March 2010 to disallow property loss relief against general income where the main purpose or one of the main purposes of such an arrangement relates to relevant tax avoidance arrangements.