Manufacturers should take advantage of their annual investment allowance (AIA) - which changed with effect from the beginning of this year - to invest in new capital equipment to add value to their businesses while raising production efficiency, the boss of a packaging equipment supplier has argued. With effect from January 1 2016, the AIA fell from an interim allowance of £500,000 to the highest permanent AIA ever of £200,000. Md of Pacepacker Services Dennis Allison advised that firms should use this allowance to invest in new business assets. "When the chancellor announced that he was capping the AIA at £200,000 in his 2015 autumn statement, medium-sized companies operating in manufacturing and agriculture, two sectors that Pacepacker specialises in, breathed a sigh of relief"said Allison. "There had been speculation that it would revert to £25,000, so settling on a year-on-year tax relief allowance of £200,000 is a considerable boost to long-term investment."
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