Budget 2014: Osborne Doubles Business Investment Tax Allowance to £500,000

UK Chancellor George Osborne has doubled the Annual Investment Allowance, a tax break aimed at encouraging investment by businesses, to £500,000.

In the Budget 2014 announcement, the AIA will be extended until the end of 2015, after initially being due to expire at the end of this year.

"In 2012, I increased the AIA ten-fold to £250,000. This generous allowance was due to expire at the end of this year – and all the business groups have urged me to extend it," said Osborne.

"So we will. But we'll do more. We're going to double the Investment Allowance to £500,000, extend it to the end of 2015, and start it next month."

Osborne added that the increase would take effect next month.