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Tax Update: Annual Investment Allowance

12/11/2020

At a glance

On 12 November 2020, the Government announced that the current Annual Investment Allowance of £1,000,000, which was due to reduce to £200,000 on 1 January 2021, will be extended for a further year to 1 January 2022.

The change should help to encourage investment in developments and refurbishments of commercial premises as businesses will continue to benefit from 100% upfront tax relief on the first £1,000,000 of expenditure incurred annually on plant and machinery qualifying for capital allowances.

If you would like to discuss the above changes get in touch with your Memery Crystal contact or Alex Barnes, our Head of Tax.

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