£1 million Annual Investment Allowance cap extended

The Treasury has confirmed that the £1 million cap on the Annual Investment Allowance (AIA) is to be extended for an additional year as the government continues to look at ways to stimulate the economy.

The Treasury has confirmed that the £1 million cap on the Annual Investment Allowance (AIA) is to be extended for an additional year as the government continues to look at ways to stimulate the economy.

The AIA provides a tax write off against profits for expenditure incurred on plant and machinery by businesses and owners of commercial property.

Businesses can now continue to claim up to £1 million in same-year tax relief through the AIA for capital investments in plant and machinery assets until 1 January 2022. The temporary £1 million cap was originally due to revert to £200,000 on 1 January 2021.

Commenting on the extension, Jesse Norman, Financial Secretary to the Treasury, 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.'

Internet link: GOV.UK news

Get in touch

Why not drop us a line or fill in our very quick enquiry form

Address

AJM Accountancy & Taxation Ltd, 21 Goldings Close, Kings Hill, West Malling, Kent ME19 4BE

Phone

07977227959

Company number: 08857398
Registered in England

Image Captcha
Enter the number above

Home | About us | Accreditation | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

© 2021 AJM Accountancy & Taxation Ltd. All rights reserved.

We use cookies on this website, you can find more information about cookies here.