Annual Investment Allowance (AIA)

The AIA was due to be reduced from the current limit of £1m to £200k, effective from 1 January 2021. However, the government announced last month that the current limit of £1m will remain until 1 January 2022. This is good news for businesses looking to spend monies on qualifying business assets in 2021 either because they have deferred expansion plans due to the pandemic or have identified new business opportunities to grow their businesses.