Evaluation of the Annual Investment Allowance
HM Revenue and Customs commissioned IFF to conduct mixed methods analysis (including econometric analysis) of the Annual Investment Allowance tax relief in 2022
Documents
Details
The Annual Investment Allowance (AIA) is a relief that can be claimed by businesses on the cost of plant and machinery. In 2022, a business could claim up to 100% of an investment up to a value of 拢1 million to help reduce the potential tax liability for that business.鈥�
This research aimed to:鈥��
-
gather evidence on the efficacy of the AIA鈥�
-
the extent to which it meets its original objectives鈥��
-
its impact on business investment (direct and indirect)鈥�
-
how appropriate AIA was as a support measure鈥�
-
proportionality of the tax relief鈥�
IFF conducted 1,350 Computer Assisted Telephone Interviews, and 50 in-depth interviews with claimant businesses and non-claimant businesses, as well as an econometric analysis of business data.聽