£1 million Annual Investment Allowance extended
Monday, 16 November 2020
The Association of Taxation Technicians (ATT) and many businesses have called upon the Chancellor to extend the availability of the temporary increase in the Annual Investment Allowance (AIA) beyond its scheduled end date of 31 December 2020 in order to help recovering businesses.
It was announced on 12 November in a written ministerial statement from the Financial Secretary, Jesse Norman, to the Treasury, that the higher AIA threshold of £1 million will remain in place until 1 January 2022.
In the statement, it was said that “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 benefiting the wider economy too. It is vital that we support businesses through the difficult months ahead.”
The AIA extension is good news for businesses that were carefully planning their capital expenditure over the next six weeks. Many finance directors and small business owners can now have a more relaxing festive period, knowing that their tax relief for investment in plant and machinery is secured for another year.
If you have any questions about AIA, please get in touch with your usual contact at Larking Gowen. You can find contact details on the Our People section of the Larking Gowen website. Alternatively, call 0330 024 0888 or email email@example.com.