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Annual Investment Allowance

[ˈænjʊəl ɪnˈvɛstmənt əˈlaʊəns]



The Annual Investment Allowance allows businesses in the UK to deduct the full cost of qualifying items from their taxable profits.

More detail:

The Annual Investment Allowance (AIA) is a tax relief scheme in the UK that allows businesses to deduct the full cost of qualifying items from their taxable profits. It is available to most businesses and includes items such as computers, vehicles, and machinery used for business purposes.

The AIA was introduced in 2008 and has undergone several changes since then. Businesses can claim up to £1 million for the 2023/24 Tax Year in tax relief on their qualifying capital expenditures in a given tax year.

It is an important tax relief for businesses as it encourages them to invest in new plant and machinery, which can lead to increased productivity and competitiveness. The AIA can also help to reduce a business's tax bill, which helps to increase profitability.

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