Annual Investment Allowance Limit Extension

The Annual Investment Allowance (AIA) gives businesses the opportunity to claim 100% capital allowances in the year of expenditure on qualifying capital assets.


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The 100% AIA amount for expenditure on plant and machinery and integral features was temporarily increased from £200,000 to £1 million with the measure due to be reversed from 31 March 2023. The government have now announced in the mini-budget that this limit will not revert to £200,000 as planned and, instead, will permanently stay at £1 million.

This measure was put in place to stimulate business investment in UK manufacturing and give upfront support to businesses during continuing COVID-related uncertainty. The fact that this temporary measure has now been made permanent is welcome news for businesses in all sectors that are looking to invest in plant and machinery.

Businesses can now plan their expenditure around their available cash flow and still be confident that they will receive this generous tax relief.

If you are expecting to incur expenditure on plant and machinery or are carrying out any refurbishment/fit out works, Please complete the below form so that we can help you maximise your claim:

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