A hearty allowance

摘要

Tax doesn't have to be taxing, so the HMRC slogan goes, but the window for it to be a saving is set to close soon. The Government's Annual Investment Allowance for 2020 currently permits companies to offset £lm of vehicle purchase costs against taxable profit for the year, which means they could save up to 19% based on the current corporation tax rate. However, the allowance is set to fall to £200,000 on 1 January 2021, which leaves no more than a matter of months to cash in. MV Asset Finance, the company's in-house asset finance team, is urging operators to act fast and make the best of what is currently a hearty allowance while it lasts. One of the key issues leading to low adoption of this saving, according to group managing director Steven Cairns, is that few companies are aware of the allowance in its current form, which means they're unlikely to be in a hurry to take advantage.