Special Report: RALPH MORTON
NO doubt the relief at seeing the planned 3p fuel duty rise for January bite the dust made you miss one of the key opportunities for a van operator to invest in new vans: the increase in the Annual Investment Allowance.
If this seems the sort language reserved for your accountant, then now’s a good time to go and speak to them to find out more.
Because the Annual Investment Allowance – a capital allowance that small businesses, sole traders and SME trades can claim – was raised from a barely useful £25,000 to a much more advantageous £250,000.
That means a wide variety of plant and machinery – most types of movable assets from combines to coaches, computers to cranes and cross-saws to commercial vans (but not cars) – will qualify.
The change in the Annual Investment Allowance announced in the Autumn Statement is from 1st January 2013.
Businesses running vans should take full advantage of the capital allowance tax break
Allan Ross, managing director of First Independent Finance, reckons that businesses running vans should take full advantage of the capital allowance tax break – and certainly hold off until January before making a new van purchase.
However, Allan warned that businesses should take advice from their accountants because the method of calculating the allowance is not straightforward.