investment allowance

See the page in this guide on the annual investment allowance.

Check if you can claim the annual investment allowance.

Labor decided not to extend the investment allowance, and it was phased out by the end of the year.

Investment allowances also remain unchanged after last year's introduction of a 40 per cent first year rate.

However, please read this in conjunction with the section below entitled 'calculating the annual investment allowance'.

The main and special rate pool may have a balance carried forward of nil due to annual investment allowance being claimed in previous years.

In practice this means you would normally claim it on the residual amount of any expenditure left after claiming the annual investment allowance.

Where your accounting period started before this date, your annual investment allowance will be proportionately reduced.

Businesses can claim an annual investment allowance for capital expenditure incurred on most items of plant and machinery.

It said that Lamont had responded to many of its suggestions such as improved investment allowances and export credit arrangements.

For accounting periods that end after 31 March 2008 most companies and organisations can claim an Annual Investment Allowance.

The Brazilian automobile assembly industry was created in the 1950s to replace imports by using investment allowances and protection as inducements to foreigners to invest.

In most cases, if you have spent £100,000 or less in total on qualifying assets, you can claim an annual investment allowance for the whole amount.

An Investment Decade for Britain will start with the immediate introduction of enhanced investment allowances (see page 9).

This includes building or premises assets which would not otherwise qualify for alternative forms of capital allowances (such as the Annual Investment Allowance).

If your accounting period spans the dates when the annual investment allowance changed, there are special, transitional rules for calculating how much allowance you can claim.

You can claim an annual investment allowance for the full £1,500 and a writing-down allowance for small pools for the £700 pool brought forward.

Few believed the Chancellor would announce any reduction in corporation tax or any increase on last year's reintroduction of first-year investment allowances at 40 per cent.

However, George Osborne failed to reverse a reduction in the annual investment allowance, which farmers have said punishes one of Britain's most capital intensive industries.

Find rules on claiming for the annual investment allowance on the HMRC website - Opens in a new window.

Add to this any balance of new expenditure not covered by your claim for the annual investment allowance or (where relevant) a 100 per cent first-year allowance.

Example: a company that pays Corporation Tax calculates its annual investment allowance for an accounting period 1 January 2010 to 31 December 2010 as follows:

You can allocate your £100,000 annual investment allowance first to the £60,000 spent on integral features, since these would otherwise only attract the 10 per cent writing-down allowance.

See the pages in this guide: if the annual investment allowance changed during your accounting period and calculating writing-down allowances if your accounting period spans a rate change.

This type of asset qualifies for the annual investment allowance, so you would normally only make a short-life election if your annual investment allowance is used up.