Annual Investment Allowance Provisional £1 million cap Extended
The Government has announced that it is extending the current temporary level of the Annual Investment Allowance (AIA) of £1,000,000 by one year covering 1 January to 31 December 2021; the legislation will be introduced before the end of the financial year.
This extension gives enhanced tax relief and simplifies taxes on plant and machinery expenditure, as well as providing businesses with upfront cashflow support during continuing COVID-related uncertainty.
From 1 January 2022, the AIA will revert to £200,000 per annum.
The announcement can be found at https://taxagents.blog.gov.uk/2020/11/16/legislation-day-2-announcements/
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