£1million Annual Investment Allowance (AIA) to be extended
The Treasury has recently announced that the £1million cap on Annual Investment Allowance claims is to be extended until 1 January 2022. As set out in our Autumn Newsletter, the cap was due to drop to £200,000 from 1 January 2021.
Businesses can therefore continue to benefit from 100% tax relief for qualifying expenditure, such as tractors, in the year on purchases of up to £1million, instead of £200,000. The same amount of relief, in the form of writing down allowances, is still available on any qualifying expenditure in excess of the AIA limit, but is spread over several years.
This move is intended to give businesses the boost they need to weather the pandemic and plan for the future. It is hoped that the extension will provide businesses with confidence to invest into next year, helping them to grow whilst also benefitting the wider economy.
This is an important point to consider if you are planning any major capital expenditure in the near future. If you would like any further advice then please do not hesitate to contact us.
Louise Heywood FCCA
Manager
Lou has been an integral part of Margaret's team since 2006, bringing with her a wealth of expertise as a qualified Chartered Certified Accountant. With a particular focus on an agricultural portfolio, as well as experience with several Estates, Lou thrives on assisting clients with all facets of accountancy and taxation, ensuring that they receive tailored advice that meets their unique needs.
Outside of her professional pursuits, Lou is a devoted mother to her young daughter, Olivia, with whom she shares a passion for the great outdoors. Together, they relish the opportunity to visit Lou's parents' farm, where they lend a helping hand whenever possible. Lou's enthusiasm for adventure extends to her love of horse riding, and she can often be found cheering on the Exeter Chiefs at Sandy Park.
Lou is available Mondays, Tuesdays, and Thursdays to tackle any query that may arise.