fbpx

Annual Investment allowance has been extended to 01/01/2022

In January 2019 the Annual Investment Allowance AIA was increased from £200k to £1 million for a period of two years ending in January 2021. There was a proposed reduction in the Annual Investment Allowance (AIA) from £1M to £200k from 1 January 2021.  The Government has announced that there will be an extension to the increase to 31 December 2021, in a move that will be welcomed by many businesses.

This ensures that companies around the nation will continue to claim up to £1M via the AIA for capital investments in plant and equipment facilities in the same-year tax relief. Corporations are entitled to deduct the full value of an item on pre-taxed income that qualifies for AIA. The government has taken the decision to ‘boost confidence as businesses look to survive the pandemic and prepare for the future’.

The extension of the temporary increase of the AIA to 1 January 2022 is a an added incentive, especially during this uncertain time, to help and promote firms and companies investing in plants and machinery. Businesses should budget their capital expenditure for the next year by extending the limit for a further duration to make use of  the 100% tax relief available for qualified expenditure.

If you would like to discuss how the extension of the increase in Annual Investment Allowance could affect your business please get in touch with us.

Leave a Reply

Your email address will not be published. Required fields are marked *

Asmat Accountants

Asmat & Co are one of Berkshires’ leading independent firms of Accountants servicing a growing and satisfied clientele. At Asmat & Co expert advice is available from senior qualified Chartered Management Accountants (ACMA) and Chartered Certified Accountants (ACCA), at very attractive packages tailored to suit varied individual and business requirements. The professional team at Asmat & Co. possesses extensive experience in providing accounting, tax, finance transformation and business advisory services to a diverse customer base.

CONTACT US


  • 84 High Street, Slough, Berkshire SL1 1EL, United Kingdom
    Get directions >>
  • 01753 424968 / 02035 988 621
  • 01753 437109
  • info@asmataccountants.co.uk

Reading Office

  • 365-367 Oxford Road, Reading, RG30 1HA
    Get directions >>
  • 0118 950 9841
  • reading@asmataccountants.co.uk



× Chat with your accountant now!