The Farmers Mart Feb/Mar 2015 - Issue 38 | Page 8

Farm News Annual Investment Allowance doubles to £500,000 in tax relief JCB Finance explains some unexpected changes in last year’s Budget that represent a £500,000 tax saving opportunity for UK Agricultural businesses contemplating purchasing agricultural machinery. »»The March 2014 Budget announced a temporary increase in the Annual Investment Allowance (AIA) from £250,000 to £500,000 with it scheduled to revert back to £25,000 on 1st January 2016. and this can sometimes result in windfall profits. When this happens, having the knowledge to be able to take full advantage of the prevailing tax incentives could save the business a massive tax bill. A recent change to the AIA - with a doubling in size to £500,000 - presents such a tax saving opportunity but it is a temporary measure, so proper machine investment plans need to be considered now. The AIA is available for capital expenditure on plant, )