The enhanced Annual Investment Allowance (AIA) and super-deduction come to an end on 31 March 2023. What might the government’s future plans for capital allowances be?
‘Bold and unprecedented’. That was the Chancellor’s description of the new 130% super deduction for plant and machinery announced in the Budget. But, when you look at the detail, how does it really stack up against the usual rules on capital allowances?
A temporary increase in the Annual Investment Allowance (AIA) to £1 million announced in the Autumn Budget 2018 is now in effect. The new allowance – five times the previous cap – will benefit businesses investing from £200,000 up to £1 million in new plant and machinery.