As part of his plans to promote growth in the economy, Chancellor Kwasi Kwarteng announced changes to the Annual Investment Allowance (AIA) in his mini-budget on 23 September 2022.
- The planned reduction in the AIA limit to £200,000 from 1 April 2023 will be scrapped.
- The AIA limit to be permanently set at £1 million. This was confirmed at Autumn Statement 2022.
This announcement comes alongside plans to develop Investment Zones in 38 local authorities in England which will benefit from additional enhanced capital allowances.
Useful guides on this topic
Mini-budget 2022: at a glance
A summary for SMEs and their owners
Annual Investment Allowance (AIA)
What is the Annual Investment Allowance? What are the limits? What expenditure qualifies?
Annual Investment Allowance (AIA): Connected companies
When are companies connected for AIA purposes? What are the consequences of connection?