We understand tax allowance rules can be confusing. The Annual Investment Allowance (AIA for short) was introduced by HMRC in 2008.

It allows businesses to claim 100% tax relief on most purchases of plant and machinery (excluding cars but including all vehicles classed as commercial vehicles). The maximum amount you can claim in any one year is £100,000.

The AIA replaced the previous first year allowances which offered tax relief of 40% or 50% depending on the size of your business.