On the 23rd September 2022 the Chancellor ' Kwasi Kwarteng' announced his Growth Plan for 2022. This included the following capital allowances changes;
Annual Investment Allowance (AIA)
The AIA will permanently remain at the current level of £1m. This enables the first £1m of qualifying expenditure on plant and machinery to be deducted in the year of expenditure. This AIA can be claimed for each chargeable period.
New investment zones to be created across England and devolved administrations for a period of 10 years. The government is currently in discussions with 38 local authorities, including Greater London, Liverpool, Greater Manchester, West Midlands, Cumbria, Tees Valley, West Yorkshire, Essex, Suffolk and Norfolk. These new investment zones will include the following capital allowances incentives.
These are due to be withdrawn on the 31st March 2023. The government announced that some technical amendments will be made to the rules to ensure that the enhanced relief will operate as originally intended. No specific details have been published.