Annual Investment Allowance increased tenfold by govt

Small businesses will benefit from an extension of the rate relief scheme and a tenfold increase of the Annual Investment Allowance, the Chancellor has announced.

While the scrapping of January's previously planned 3p Fuel Duty rise is likely to dominate the headlines, George Osborne also revealed plans to extend the Small Business Rate relief scheme that already helps more than 500,000 small firms and leaves 350,000 paying nothing at all.

Furthermore, small businesses will also be able to benefit from 100 per cent relief on £250,000's worth of plant and machinery investment from January 1st - a ten-time increase on the previous amount.

Mr Osborne explained: "This capital allowance will cover the total annual investment undertaken by 99 per cent of all the business in Britain.

"It is a huge boost to all those who run a business, who aspire to grow and expand and create jobs."

Businesses will also be able to take advantage of extra help from UK Trade and Investment on exporting products to emerging markets, after the body was given extra funding in today's Autumn Statement.

Posted by Thomas Fletcher

Date published 5 Dec 2012 | Last updated 5 Dec 2012