The Annual Investment Allowance (AIA) is a key UK capital allowances measure that enables businesses to deduct the full cost of qualifying plant and machinery from taxable profits, up to a set annual limit. Designed to encourage investment, the AIA applies to most assets used in a business—excluding cars—and can significantly reduce corporation or income tax liabilities in the year of purchase.

Coverage includes updates to the AIA limit, HMRC guidance, and changes in qualifying criteria, as well as analysis of how businesses can time capital expenditure to maximise relief. Editorial reporting also examines the interaction between AIA and other capital allowances, such as the super-deduction and full expensing measures, and explores sector-specific considerations for manufacturing, construction, and agricultural businesses.