The Chancellor picked out investment as his preferred give-away to the business sector in his Autumn Budget 2018.
The Annual Investment Allowance is being increased from 1 January 2019, to £1m from the present base level set some years ago of £200,000.
The increase is due to be available for two years, until 31 December 2020.
At this later date the AIA will presumably return to the £200,000 limit.
The AIA allows for the 100% write down of qualifying asset purchases against business profits. For profitable companies, partnerships (excluding partnerships where one of the partners is a company or another partnership) and sole traders this is a generous tax break.
The AIA is available for most plant and equipment purchases.
The AIA is not available for purchases of:
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