The Finance Bill clauses to reduce the Annual Investment Allowance (AIA) to £25,000 include some apportionment rules that could restrict the amounts available during 2011-12. Rebecca Benneyworth explains the implications and ways to mitigate them.

The limit for AIA reduces from £100,000 to £25,000 from April 2012 (1 April for companies, 6 April for income tax businesses). It is worth thinking carefully, not only about timing of expenditure, but also about accounting dates, if the client intends to incur substantial expenditure.

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