Government extends £1 million tax break

Nov 13, 2020
Author: Craig Walker
£1 million Tax break

HM Treasury has announced that the Annual Investment Allowance (AIA) will remain at £1 million until 1 January 2022. 

The AIA allows businesses to claim same-year tax relief for capital investments in plant and machinery assets and was due to revert to £200,000 on 1 January 2021.

The one-year extension of the temporary £1 million threshold is intended to stimulate investment in UK manufacturing and boost business confidence. 

Financial Secretary to the Treasury Jesse Norman said “It is vital that we support business through the difficult months ahead.  Extending the Annual Investment Allowance’s £1 million cap will give businesses the confidence they need to invest into next year, helping them to grow whilst benefitting the wider economy too.”

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Craig Walker

Tax Director, Sheffield