Investment allowance boost for businesses

The Annual Investment Allowance for businesses has been doubled to £500,000, George Osborne has announced.

Mark Evans, Tax Partner at independent chartered accountants Baker Tilly, says: "This is great news for businesses and means any spending up to that amount on capital plant or machinery can receive tax relief of 100%.

"Obviously George Osborne has been persuaded to change his mind as it was pre-announced that this allowance would fall from £250,000 to £25,000."

The Chancellor now says 99.8% of businesses will get the benefit of this measure.

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Businesses welcome Chancellor's announcements

Businesses have broadly welcomed the announcements in the Budget aimed at their sector. Measures included cutting energy costs, and doubling investment in a lending scheme aimed at boosting exports.