Planned Large CapEx? HMRC extend Annual Investment Allowance 16th November 2020 Those businesses that have large capital expenditure spends each year, such as manufacturers and farmers, will be aware that there has been a very generous capital allowances tax regime in recent years, currently allowing year 1 tax relief on eligible purchases up to £1m pa. This generosity was scheduled to be reduced wef 1 January 2021, with a reduction in the Annual Investment Allowance from £1m to £200k. In a move presumably intended to prime the economy as we struggle out of the pandemic, and hold off recession, the Treasury has now announced that they will delay this change until 31 December 2021. This is viewed as a welcome change for larger SME’s, and presumably also for those businesses that manufacture and sell plant and machinery.