Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will restrict access to the Annual Investment Allowance to bar companies with a history of tax avoidance.

The Annual Investment Allowance (AIA) gives 100 per cent tax relief to businesses on their investments in plant and machinery up to a threshold of £1 million. This provides upfront support to encourage businesses to invest in the equipment they need, including more efficient equipment.

At the Autumn Budget 2021, the Government extended the AIA’s £1 million limit until April 2023. The AIA and the super-deduction announced at Spring Budget 2021 will support business investment in capital assets across the nation. Over the course of 2021, business surveys have pointed to a strong recovery in forward-looking investment intentions.