Do 2014 Budget changes to Annual Investment Allowance help your office redesign?



  • Posted on: 2 May 2014
  • By: admin
Harvey Banner

Annual investment allowance can help your furniture purchases   If the budget had made changes that could dramatically help finance your office redesign and refit, you'd know about it....right?

Although the budget changes were made in March many companies have not made the connection on the implications this could have for investment in their office building or interior. In March of this year the annual investment allowance for British companies was extended from £250,000 to £500,000 until the end of 2015 with immediate effect.

The AIA accelerates the timing of tax relief on qualifying capital expenditure. The good news for many companies that are considering improvements to their office space is this capital expenditure can include:

  • Office Furniture and equipment,
  • Building fixtures e.g. shop fittings, kitchen or bathroom fittings

So if you were thinking of rewarding your staff by improving your office space, or need to replan to fit in more staff then you can do this and reduce your tax burden at the same time.

Most businesses are elligible for 100% of the investment allowance and its set to cost the Government £2bn to implement. 

Food for thought when you are working out those budgets! 

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