CKLG BLOG
AIA Update: Annual Investment Allowance Reduction from January 2021 now extended until 31 December 2021
16.11.2020
Business
AIA Update: Annual Investment Allowance Reduction from January 2021 now extended until 31 December 2021
The Annual Investment Allowance (AIA) temporary increase has been extended until 31 December 2021 for qualifying plant and machinery expenditure. Originally it was due to fall from 1 January 2021 to £200,000.
The 100% AIA was increased to £1,000,000 on 1 January 2019 and will now apply until 31 December 2021.
The AIA may return to £200,000 on 1 January 2022.
- As a reminder, the AIA allows a 100% deduction for qualifying plant and machinery expenditure upto the AIA limit incurred in a company or group of companies.
- Above the AIA, the usual capital allowances writing down allowances of 18% and 6% apply.
This is good news for anyone planning to incur significant expenditure on plant and machinery early in 2021, where otherwise the upfront tax relief could have dropped considerably.
PAST POSTS
05.05.2022
21.04.2022
11.04.2022
07.04.2022
07.04.2022
31.03.2022
03.03.2022
03.02.2022
23.11.2021
22.11.2021
04.10.2021
28.07.2021
17.05.2021
09.04.2021
06.04.2021
23.03.2021
22.01.2021
12.11.2020
12.11.2020
04.11.2020
07.10.2020
17.09.2020
03.09.2020
16.07.2020
07.02.2020
26.06.2019
13.06.2019
08.05.2019
21.03.2019
04.03.2019
28.02.2019
21.01.2019
17.01.2019