Return on capital

As any practice owner will know, the costs of properly equipping the business are ever-increasing, so any savings that can be made against tax are doubly welcome. There are two developments recently that make this an area well worth looking at.

Plan your capital expenditure

The Government has recently increased the annual investment allowance (AIA) from £25k to £250k. However, there are pitfalls for the unwary. For example, the £250k is an annual allowance as from January 1, 2013. If your financial year ends, say, on June 30, 2013,

you will only get £125k allowed for any capital expenditure in the six months to June 30, together with £12,500 for the previous six months. It is therefore important to seek advice on the proposed timing of any significant capital expenditure. The £250k annual investment allowance is in place for two years so this is the window within which to plan any substantial outlay.