Annual Investment Allowance is a tax break worth up to £1 million which is designed to stimulate investment in UK manufacturing to support business confidence.
This figure has been extended to companies including manufacturing firms through the annual investment allowance (AIA) for capital investments in plant and machinery assets until 1 January 2022. This temporary cap of £1 million was originally meant to be reduced to £200,000 on January 1st, 2021.
This move to extend the cap to £1 million is to ease the strain on companies as they survive the pandemic and boost confidence in the economy.
Small to medium companies make up 99% of total companies within the UK economy so it is essential for the government to support them through the Covid-19 pandemic in order for the economy to recover and thrive in the future.
Find out how your company could benefit from Annual Investment Allowances.