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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:

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, are discussed in further detail below.

The AIA cannot be claimed on expenditure incurred, or deemed to be incurred, on:

1. •

   cars

2. •

   assets of a ring-fence trade (ie a trade relating to oil extraction activities etc) where a supplementary charge applies under CTA 2010, s 330

3. •

   gifts

4. •

   assets