Government extends £1 million Annual Investment Allowance03/02/2021
In an effort to stimulate the economy, the Treasury has extended the £1 million cap on the Annual Investment Allowance (AIA) for another year. This new, higher level, investment cap was meant to revert to £200,000 on January 1st 2021, and its extension is a boon to businesses across the country.
The AIA provides a tax write-off against profits for all expenditure incurred on plant and machinery by businesses and owners of commercial property. In other words, businesses are now in possession of up-to £1 million in same-year tax relief for capital investments in plant and machinery assets until January 1st 2022.
Financial Secretary to the Treasurer Jesse Norman said: “It is vital that we support business through the difficult months ahead. Extending the AIA’s £1 million cap will give businesses the confidence they need to invest into next year, helping them to grow whilst benefiting the wider economy too.”
If you want to ensure that you’re making the most of your Annual Investment Allowance, give JW Hinks a call on 0121 456 0190.