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? 


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