HM Treasury has announced that the £1 million tax break to support business confidence is to be extended.
Instead of allowing the Annual Investment Allowance (AIA) to revert to £200,000 from 1 January 2021, the government is extending the temporary £1 million cap set at Budget 2018 until 31 December 2021.
This means that businesses such as manufacturing firms can continue to claim up to £1 million in same-year tax relief through the AIA for capital investments in assets up until the new date.
This move is intended to boost confidence as companies look to weather the pandemic and plan for the future.
Jesse Norman, Financial Secretary to the Treasury stated “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.”
For more information about the tax break
click here
If you need further help or advice about this or any of the measures in place to help businesses affected by the coronavirus, please contact your usual Moore adviser.