The Annual Investment Allowance £1 million temporary cap will be extended until 1 January 2022.
A £1 million tax break to stimulate investment in UK businesses, to support confidence, is to be extended, HM Treasury has announced.
Businesses, including manufacturing firms, can continue to claim up to £1 million p.a. in tax relief through the Annual Investment Allowance (AIA) for capital investments in plant, machinery and integral feature assets until 1 January 2022. The extension of the temporary £1 million cap was originally due to revert to £200,000 on 1 January 2021.
This move is intended to boost confidence as companies look to weather the pandemic and plan for the future.
At Beavis Morgan, we have a track record of assisting SME’s providing bespoke and efficient tax advice. For a no obligation discussion, please contact Fiona Cross, Tax Partner, or your usual Beavis Morgan partner.
Further reading: Cash back through Capital Allowances
For a full list of government announcements, please see the Written Ministerial Statement.