Date posted: 11th Jan 2021
The Chancellor recently announced that the temporary increase in the Annual Investment Allowance (AIA) for expenditure on plant and machinery has been extended to 31 December 2021.
The tax relief was originally scheduled to revert to just £200,000 from 1 January 2021, but that will now be delayed by twelve months.
Remember that there is currently an additional 100% tax relief for the cost of buying a new car for the business where the CO2 emissions of the car are no more than 50g per kilometre. That threshold reduces to 0g from April 2021.
Read more articles from our January 2021 tax news below:
- Top Tax Tips for 2021
- Proposed changes to capital gains tax rules
- Employees reminded not to forget working from home and other tax relief
- New year resolutions to save tax
- New VAT rules for construction sector start on 1 March 2021
- £1 million Annual Investment Allowances extended
- Time to review your will?
- Catching up on deferred VAT payments
- SME R&D credit for surrendering losses – the rules are changing!
- Representative occupiers – what next?
Read more below: