VBC (Van Benefit Charge)
The anticipated change to a CO2 based regime has been granted a stay of execution with the Chancellor, George Osborne, announcing that the VBC will increase in line with the RPI (Retail Price Index) from April 2015.
AIA (Annual Investment Allowance)
Businesses looking to invest in a tax-efficient way have been handed a boost by measures outlined in the Budget 2014 announcements.
The Annual Investment Allowance (AIA) will increase to £500,000 per business from April 2014 until December 2015,at which point it will return to £250,000.
The Annual AIA, which allows businesses to invest in new plant and machinery – including Light Commercial Vehicles (LCVs) – for maximum tax benefits, was initially cut from £100,000 to £25,000 by the coalition.
However,as part of an effort to provide greater tax aid to businesses,the Chancellor has further improved on the 2012 increase to £250,000 by doubling the amount. Moving forward,the AIA has been extended to 2015 and is now worth £500,000.
The AIA is a type of capital allowance,offering tax relief at 100 per cent on qualifying expenses throughout the year of purchase. The maximum businesses can deduct from taxable profits is now £500,000. This pro-rates for short or long periods, and also for periods that span the operative dates and rates of allowance.
CVSL will advise you on this valuable tax benefit with the best funding options to suit you business structure. Timing is critical so contact us now on 0800 085 425 to see how you could make the most from AIA for this financial year before 5th April 2014