George Osborne has revealed a surprise boost for businesses with a tenfold increase to the Annual Investment Allowance (AIA) and a further reduction to corporation tax.
The huge increase in AIA, up from £25,000 to £250,000, was announced during the Autumn Statement this afternoon and comes as a massive uplift for small and medium-sized British businesses.
Lesley Stalker, head of tax at Robert James Partnership, said during our live panel debate that the increase in AIA was “fantastic news” and she was “off to share the news about the AIA with our clients”.
The capital allowance will be increased for a two year period starting from 1 January 2013.
About Robert Lovell
Business and finance journalist