Capital Allowances

Expenditure within the AIA qualifies for 100% allowance in the year of purchase. The AIA cap is currently 200,000 from the 1st January 2016 for a 12-month period. If the accounting period is shorter or longer than 12-months the AIA cap is apportioned based on the length of the period.
The AIA allowance allows businesses to invest in equipment and fixtures (cars and buildings don’t qualify), with 100% tax relief in the year of purchase.