Annual investment allowance (AIA)

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

Amount of the allowance

An AIA is available for expenditure incurred on plant or machinery on or after 1 April 2008. The maximum amount of AIA available has varied significantly over recent years and the latest amounts are as follows:

Maximum annual allowance	Period qualifying expenditure incurred
£1,000,000	From 1 January 2019
£200,000	1 January 2016 until 31 December 2018
£500,000	6 April 2014 (1 April 2014 for companies) until 31 December 2015

CAA 2001, ss 38A, 51A(5); F(No 2)A 2023, s 8

The level of AIA from 1 January 2019 was initially a temporary maximum of £1,000,000 but this has now been made permanent. The transitional rules, which are to be applied when calculating the AIA for accounting periods which straddle the dates above,

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