A · Glossary
Annual Investment Allowance (AIA)
A 100% first-year tax deduction on most equipment, up to £1m per year.
The Annual Investment Allowance (AIA) is a 100% first-year deduction for tax purposes on most plant, machinery and equipment your business buys. The cap is £1 million per year (made permanent from 2023).
Buy a £20k laptop fleet — you wipe £20k off your taxable profit immediately, saving up to £5k corporation tax (Ltd) or up to £9k income tax + NI (sole trader, higher rate).
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