Annual investment allowance reduction

After many months of the Covid-19 pandemic it seems to be accepted that we are living in strange times and tax as well as the wider world is to put it mildly in a state of flux. Since the start of the outbreak and particularly in tax and business support measures the ink hardly seems dry on one initiative than it is overtaken by events and replaced. One piece of tax legislation that we might term a business support measure is the annual investment allowance (AIA) whereby a business can claim the full cost of capital investment in the year in which it is incurred rather than by way of a writing down allowance over the life or ownership of the asset. Obviously this facility helps cashflow by in effect reducing the cost of qualifying business assets by the marginal rate of...