Everybody focuses on the big tax headline, which means everybody overlooks the small print and the little hidden tax increases.
Remember that in June 2010 the Chancellor reduced the Annual Investment Allowance from £100,000 to £25,000?
Below this threshold, businesses that invest in commercial vehicles, plant, computers or other equipment receive 100% tax relief on the amount invested.
The maximum level of investment that will attract relief under the Annual Investment Allowance, which is a big help for businesses, will from April 2012 drop by 75% from £100,000 to £25,000.
We all know that the economy needs initiatives to further growth, so it is a shame that a good idea has been so abruptly abandoned.
I would be happy to provide you with further information on this topic or with any other input to help you with your work – just let me know.
