Dealing with HMRC – policy paper

Annual investment allowance: increase to £500,000 for extended temporary period

This Tax Information and Impact Note explains the changes to the temporary Annual Investment Allowance.

Detail

This measure is designed to stimulate business investment in the economy by providing an extended time-limited incentive for businesses to invest in plant or machinery. The time extension is to 31 December 2015 for Corporation Tax and Income Tax and further increase to £500,000 of the temporary Annual Investment Allowance limit.

The limit will return from £500,000 to £25,000 after the extension has ended.