Tax advantages on relocatable and removable partitions will change in 2012

Annual Investment Allowance which currently offers businesses 100% tax relief on the first £100,000 of qualifying expenditure, including relocatable partitioning, will be changed in April 2012 to just £25,000. Prime Chartered Accountants for the Association of Interior Specialists (AIS) cited partitioning that was intended to be movable qualifies as plant and machinery, and is therefore eligible for this allowance, and not seen as part of the building where no tax relief is available. This tax relief has been allowable since 1958 and from April 6 2010 the terms were updated providing 100% relief on the first £100,000 of qualifying expenditure and then 20% above. In light of this recent news SAS International urges businesses to consider refurbishment sooner rather than later to benefit from the current terms.