Define: Annual Investment Allowance (AIA)

UK Accounting Glossary

Definition: Annual Investment Allowance (AIA)


Quick Summary of Annual Investment Allowance (AIA)


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.



What is the dictionary definition of Annual Investment Allowance (AIA)?

Dictionary Definition


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.


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Full Definition of Annual Investment Allowance (AIA)


The Annual Investment Allowance (AIA) is a form of tax relief for British businesses that is designated for the purchase of business equipment. The Annual Investment Allowance allows a business to deduct the total amount of qualifying capital expenditure up to a certain limit from its taxable profits in a given tax year.


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Definition Sources


Definitions for Annual Investment Allowance (AIA) are sourced/syndicated from:


This glossary post was last updated: 4th February 2019.