Annual Investment Allowance (AIA)

The amount that businesses can invest in plant and machinery each year and obtain 100% upfront tax relief will be set permanently at £200,000 from 1 January 2016. Since April 2014, businesses have benefitted from a temporary increase in the AIA to £500,000 but the permanent level of the AIA was due to fall to just £25,000 from 1 January 2016. In the March 2015 Budget the government stated that the allowance would not fall this low and in today’s Budget the new permanent level has been confirmed at £200,000.