No major announcements relating to capital allowances in the Autumn Statement today other than the extension of the 100% first year allowance on electric vehicle charge-points to 2025 and the recommitment to maintaining the Annual Investment Allowance at £1m.
Despite what has been trailed in the media in recent weeks, the Chancellor has confirmed that the Investment Zones programme (which is expected to include various enhanced tax incentives including capital allowances) will continue to be introduced albeit refocused to act as a catalyst for a limited number of the highest potential knowledge-intensive growth clusters. We expect further details on this to be announced in the Spring.
With the super-deduction coming to an end on 31 March next year and now the limiting of Investment Zone areas, it will be interesting to see the impact on investment decisions of businesses and whether these measures will help stimulate long term capital investment or result in lukewarm adoption similar to Freeports.
It will be more important than ever that businesses focus now on getting the most out of their capital investment in the lead up to super-deduction ending on 31 March 2023 and planning ahead on how to get the most out of their capital expenditure programme.
If you wish to discuss please contact:
Portia Pierrel or your usual PwC Capital Allowance Specialist