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The Government have extended the £1 million AIA tax break to stimulate investment in UK manufacturing – are you making use of your annual investment allowance?

Does you business deal with Plant & Machinery? If yes are you making use of your annual investment allowance?

If your business deals with plant and machinery, you might be entitled to use your Annual Investment Allowance (AIA). You could claim up to 100% tax relief on any qualifying plant and machinery assets in the first year of purchase, that are bought outright – not leased. The criteria for these assets are quite rigorous, and exclude cars, but it’s worthwhile checking with your accountant to see if your business qualifies.

What is AIA – Annual Investment Allowance?

This is a 100% upfront allowance that applies to qualifying expenditure up to a specified annual limit or cap. If a business spends beyond the annual limit, the extra qualifying expenditure can attract relief under the normal capital allowances regime.

What is the AIA limit? When does this end?

The AIA limit was temporarily increased to £1,000,000 from 1st January 2019 (initially for 2 years), but due to Covid19, businesses can still benefit from this temporary increase in the AIA limit to £1,000,000 until 1st January 2022. This move by The Treasury is intended to boost confidence as companies look to weather the pandemic and plan for the future.

Find out more about Annual Investment Allowance and Tax Breaks for your business

Whether you’re setting up a new small business or have already established your enterprise, there are plenty of tax breaks worth researching to free up or claim back vital funds. If you’d like help with this, email me, that’s Amy Armitage, at or give us a call on 01992 444466 and we can advise you.

We have been working hard to continue to keep you updated as the Government releases new information and are doing everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.

HB Accountants is here to help you find optimum tax efficiency: giving you access to experienced accountants and useful information and support no matter your business size or sector. If you would like a no obligation discussion about how we can help you, please feel free to contact the team on 01992 444466.  We’re accountants for business and we’re here to help you grow.

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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above

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