Businesses investing in plant and machinery will welcome yet another extension in the 100% Annual Investment Allowance (AIA) until 31st March 2023. The 100% relief was scheduled to revert to £200,000 on 1st January 2022. This deduction is available to unincorporated businesses as well as limited companies; the equipment does not have to be new.

This tax allowance is not as generous as the 130% super-deduction announced in the March 2021 Budget, which is available when new plant and machinery is acquired by limited companies between 1 April 2021 and 31 March 2023.