Annual Investment Allowance Increased to £1,000,000 for 2019 & 2020
- Garth Bushnell
The Annual Investment Allowance (AIA) has been temporarily increased from £200,000 to £1,000,000 for a two year period (1st January 2019 to 31st December 2020). For qualifying plant and machinery, the Annual Investment Allowance allows businesses to claim 100% tax relief in the year of purchase.
This increase takes the allowance to its highest level since its introduction in 2008, so there has never been a better time to invest! Businesses do not necessarily need to pay for the assets outright, in most cases they can be financed and the full allowance still claimed. This is an excellent opportunity for businesses to take advantage of the £1,000,000 allowance (£2,000,000 over the 2 year period) before it reverts back to a much lower level in January 2021.
Speak to your accountant today to see how your business can take advantage of this opportunity.