£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

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

© 2022 Michael Harwood & Co. Chartered Accountants. All rights reserved.

“Michael Harwood & Co” is a trading name of Greville House Services Limited, a Limited Company registered in England & Wales (company number 04119622). Registered office address:

Michael Harwood & Co. Chartered Accountants, Greville House, 10 Jury Street, Warwick, Warwickshire CV34 4EW

A list of directors is available for inspection at the registered office. Any reference to a ‘partner’ in relation to Michael Harwood & Co means a Director of Greville House Services Limited.
Michael Harwood & Co is registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales’. Details about our audit registration can be viewed at www.auditregister.org.uk under our firm reference number C003802656.


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