Annual investment allowance £1m temporary cap extended to 2022

The government has extended the annual investment allowance £1m threshold until 1 January 2022. It was previously due to revert to £200 000 on 1 January 2021.

The move is intended to help companies weather the pandemic and plan for the future. Financial secretary to the Treasury Jesse Norman said: ‘It is vital that we support business through the difficult months ahead. Extending the annual investment allowance £1m cap will give businesses the confidence they need to invest into next year helping them to grow whilst benefitting the wider economy too.’

ATT president Jeremy Coker said: ‘The extension will be very welcome for businesses with higher levels of qualifying capital expenditure. However for the many businesses whose relevant annual expenditure is no more than £200 000 it will simply delay by one year an unwelcome complication which would otherwise have arisen on 31 December 2020. We...