The Chancellor made the following new announcements in respect of Capital Allowances in his Autumn Budget 2021.

Annual Investment Allowance (AIA) 

From 1 January 2022

  • The £1 million Annual Investment Allowance limit is now extended to 31 March 2023. It was due to decrease to £200,000 from 1 January 2022.
  • Transitional rules will apply where a business has a tax period that spans 1 April 2023, when the limit reverts to £200,000.

Vehicles: technical amendments

From 2017

  • The Capital Allowances Act 2001 will be amended to update the official vehicle approval documentation recognised for determining the level of a Vehicle’s CO2 emissions. This will include the new certificates of conformity which will be introduced in 2022. 
  • An amendment will be made to treat the applicable emissions figure as that arising from the Worldwide Harmonised Light Vehicle Test Procedure.
  • These amendments will have effect from the 2017-18 tax year for Income Tax or for accounting periods ending on or after 4 November 2017 for Corporation Tax.

Useful guides on this topic

Autumn Budget 2021: At a glance
A summary of key budget announcements together with items published without announcement.

Annual Investment Allowance (AIA)
What is the Annual Investment Allowance? What are the limits? What expenditure qualifies? 

Oak ad
Are you enjoying our content? 

Thousands of accountants and advisers and their clients use as their primary TAX resource.

Register with us now to receive our receive our FREE SME Topical Tax Update & newletter.