skip to navigationskip to main content

Annual Investment Allowance Provisional £1 million cap Extended

Posted 17/11/2020

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

Also follow us for further updates on:

Linked In


Subscribe to our newsletter

Our monthly newsletter contains a round up of the latest tax news and updates of what's happening at Hammond McNulty

As a subscriber you will automatically receive our newsletter direct to your inbox

Please read our Privacy Policy before signing up