A £1 million tax break to stimulate investment in UK manufacturing, known as the Annual Investment Allowance (AIA), is to be extended until 1 January 2022.

Businesses, including manufacturing firms, can continue to claim up to £1 million in same-year tax relief through the Annual Investment Allowance (AIA) for capital investments in plant and machinery assets until 1 January 2022. The extension of the temporary £1 million cap was originally due to revert to £200,000 on 1 January 2021.

This move is intended to boost confidence as companies look to weather the pandemic and plan for the future, , HM Treasury said.

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