UK Accounting Glossary
A tax allowance up to the value of £200,000 each tax year, which can be offset against corporation tax when your company buys assets.
Annual Investment Allowance (AIA) is a capital allowance which has been available since April 2008. It allows business to offset up to 100% of the capital expenditure it has made in any one financial year against corporation tax up to £200,000. The Annual Investment Allowance is available to businesses of any legal form or any size. However, you are unable to claim Annual Investment Allowance for non-commercial motors.