Helping Our Clients, James Penman Plant Hire, Benefit From The Increased AIA Limit
As mentioned in our previous article, the Annual Investment Allowance (AIA) limit has been increased from £200,000 to £1million and is valid until 31 December 2020, however many businesses aren’t planning on taking advantage of this higher limit, partly, due to a lack of understanding and awareness.
The AIA increase provides a great opportunity for businesses to invest in critical assets, such as plant and machinery, whilst accelerating their tax relief and likely increasing their productivity and growth.
Having advised our client, James Penman (Plant Hire) Limited based in Kirkcaldy, for over 25 years, we spoke with the Penman family about the AIA increase and agreed it would provide a fantastic investment opportunity. The highly experienced, family owned company specialise in the provision of plant hire and drainage services to both the public and private sector across Scotland.
Ross Oliphant, Partner in our Glenrothes office, commented;
“We encouraged the Penman family to make use of the temporary increase. It was critical we get the timing of the expenditure right so they could invest in new equipment to increase capacity and efficiency.”
James Penman, who recently featured in the Autumn edition of the Fife Business Matters discussing how they benefited from the temporary increase, commented;
“Our business revolves around high tech machinery, and we regularly invest in our equipment in order to maintain our standards and further capacity. When EQ advised us about the temporary increase of the AIA limit, we knew we had to capitalise on it. As such, we have been able to invest £500,000 in our new plant fleet, which has already made a significant difference.”