Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department will review the Annual Investment Allowance threshold and take steps to improve the eligibility and uptake of capital allowances among horticultural businesses who are investing in the transition to peat-free growing, water resilience measures, and automation to boost efficiency.

The Annual Investment Allowance allows both incorporated and unincorporated businesses to deduct the entire cost of investment in both main and special rate assets in one go, up to £1 million per year, which covers the investment of 99% of businesses.

In line with the commitments in the 2024 Corporate Tax Roadmap, at Budget the government confirmed it has maintained the parts of the UK Corporate Tax offer that are most important for attracting new investment for the duration of the parliament: the low Corporation Tax main rate of 25%, the generous full expensing offer for plant and machinery and the Annual Investment Allowance.