The UK government has announced that a £1 million tax break is to be extended to help stimulate investment in UK manufacturing as Covid-19 restrictions continue.

Businesses, including manufacturing firms, can continue to claim up to £1 million in same-year tax relief through the Annual Investment Allowance for capital investments in plant and machinery assets until 1 January 2022.  

The extension is intended to boost business confidence as companies look to weather the coronavirus pandemic and plan for the future.

Jesse Norman, financial secretary to HM Treasury, commented: “It is vital that we support business through the difficult months ahead. Extending the Annual Investment Allowance’s £1 million cap will give businesses the confidence they need to invest into next year, helping them to grow whilst benefiting the wider economy too.”