07.10.2011

Tax benefit or not?

We recently carried a report on the launch of some interesting finance packages by Niftylift, which took advantage of some beneficial tax treatment of capital investments in the UK, available for the fiscal year to April 2012.

One reader properly questioned whether these tax benefits were in fact available for non-operated rental equipment.

A tax expert has recently placed another comment which seems to clarify the tax treatment and confirm Niftylift’s launch material that says that IF you made/make a profit this year there is a significant cash and depreciation benefit available new equipment investments made before the end of the UK tax year.

The second comment follows as its advice stands alone, or you canlink[/en/news/story/13269/]( Click here to go directly back to the original report with both carries both comments of course )

Our advice of course would be double check with your accountant before signing on the dotted line.

Comment 2:
“Just responding to Jim's comment that rental companies will be unable to claim these allowances unless an operator is supplied with the kit. This was a point clarified with HMRC back in 2008 when the old 40% First year Allowances (FYA)were replaced by the new Annual Investment Allowance (AIA). It had been the problem with the old FYA but it does NOT apply to the AIA. All companies can claim the AIA but can only claim it once in each tax year and the clock is ticking before the current £100,000 is reduced to £25,000 from next tax year (April 2012). For businesses who have not spent their full £100,000 - don't leave it too late because the plant has to be available for use in the business by that date.”