In a positive move the Government has announced that the Annual Investment Allowance (AIA) of £1,000,000, which was due to revert to £200,000 on 1 January 2021, will be extended for a further year to 1 January 2022.
The change, in response to the effects of Covid-19, means that businesses will continue to benefit from 100% first year tax relief on the first £1,000,000 of Capital Allowances identified, encouraging investment on property purchases, developments and refurbishments over the next 12 months.