Operators who plan to acquire new vans should do so by the end of this year to ensure they secure the maximum tax advantage. That’s the message from Mercedes-Benz Vans, which is reminding businesses that the annual investment allowance (AIA) will drop to less than half its current value from 1 January 2016.
The AIA enables operators to claim tax relief on purchased capital equipment – including vans – during each tax year. It was increased temporarily to £500,000 in April 2014, but from 1 January 2016, it will be cut to £200,000.
"Bring your bigger business purchases, such as vans, forward – particularly if you have had a profitable year," advises Steve Bridge, managing director for Mercedes-Benz Vans.
He also points out that leases do not qualify for the AIA, although hire purchases and contract purchases are allowable, as well as outright purchase.
"We are the only manufacturer to offer the choice of hire purchase or Agility (contract purchase) across the whole van and truck range," he adds.
