On 12 November 2020, the Government made several tax policy announcements including the extension of the temporary AIA limit increase.
In the hope of incentivising business to boost capital expenditure, the Government has announced a yearlong extension to the temporary increase of the Annual Investment Allowance (AIA). The AIA provides in-year tax relief on 100% of the cost on qualifying capital expenditure, up to a fixed limit.
Instead of allowing the AIA to revert back to £200,000 from 1 January 2021, the Government is extending the temporary £1million cap set at Budget 2018 until 31 December 2021.
This should be a welcome relief for those businesses with substantial capital expenditure.
Please contact to us to see how we can assist on your property related capital expenditure.