Define: Annual Investment Allowance (AIA)

UK Accounting Glossary

Definition: Annual Investment Allowance (AIA)


Quick Summary


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.


Full Definition



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