The annual investment allowance (AIA) threshold has for some time been set at £200,00, with a temporary increase in the threshold announced annually to support businesses for usually the next 12 months. However, last month, the Chancellor announced that the increase to £1 million will be retained on a permanent basis, which allows businesses to plan their investment spending rather than never being sure if the annual investment allowance will be available in the following year.
This will be important to businesses due to the availability of the Super Deduction ceasing by 31 March 2023.
If you would like to discuss how this can benefit your business or to ensure your company’s tax efficiencies, please contact your usual NRB contact or our Senior Tax Manager, Scott Lees.
