The Annual Investment Allowance (AIA) of 100% has now been retained until at least 31 March 2023. Up to £1m per year of capital expenditure can benefit from the allowance. This figure could well fall again in 2023 but much will depend on the economic growth in the coming year. At least we are no longer constrained by EU rules which prevented the AIA from being sustained at this high level of expenditure for a long period.
It is worth noting the the current "Super Deduction" of 130% is also available until March 2023 on main rate assets (plant and machinery, commercial vehicles etc) and a 50% deduction available for special rate assets. Do keep in mind that expenditure on cars does not qualify for any of these allowances.
