Government extends £1m tax break

HM Treasury is extending a £1m tax break to stimulate investment in UK manufacturing and boost market confidence. Businesses, including manufacturing firms, can continue to claim up to £1m in same-year tax relief through the Annual Investment Allowance (AIA) for capital investments in plant and machinery assets until 1 January 2022. The extension of the temporary £1m cap was originally due to revert to £200,000 on 1 January 2021.

Financial Secretary to the Treasury Jesse Norman says: “It is vital that we support business through the difficult months ahead. Extending the AIA’s £1m cap will give manufacturers the confidence they need for investment into next year, helping them to grow while also benefitting the wider economy.”

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