Government extends 100% tax break up to £1 million for a further year
In a positive move the Government has announced that the current Annual Investment Allowance (AIA) of £1,000,000, which was due to revert down to £200,000 on 1 January 2021, will be extended for a further year to 1 January 2022.
The extension is intended to boost confidence as businesses look to weather the impact of the Covid-19 pandemic and plan for the future.
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.”
This extension will mean that businesses will continue to benefit from 100% upfront tax relief on the first £1,000,000 of Capital Allowances identified which will encourage investment on property purchases, developments and refurbishments over the next 12 months.
The information was correct at time of publishing but may now be out of date.