Ups and downs: The annual investment allowance (Taxation)

The annual investment allowance was established to allow businesses to claim a 100% upfront allowance for capital expenditure incurred on most items of plant and machinery. Since its introduction in 2008, it has been subject to various changes. Most recently, Finance Bill 2014, clause 10 and Sch 2 increased the maximum allowance to £500,000 from April 2014 to the end of December 2015.

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