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Annual Investment Allowance (AIA) Definition
Most assets purchased for business purposes can be claimed as qualifying expenses for AIA, with the primary categories as listed below:
Assets that cannot be claimed include buildings, cars, land or structures such as bridges or docks, and items used solely for business entertainment.
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The Annual Investment Allowance (AIA) is a form of tax relief for businesses in the UK that is designated for the purchase of business equipment.
The Annual Investment Allowance was introduced in 2008
and allows a business to deduct the total amount of qualifying capital expenditure up to a certain limit from their taxable profits in a given tax year.
A sole proprietor or member of a partnership with more than one business is usually eligible for the Annual Investment Allowance
for each business, unless the businesses are operated on the same premises and/or conduct similar activities.
Part of the cost of cars used for business purposes can be deducted, but not as a part of the Annual Investment Allowance.
Since its inception, the levels of expenditure which may be claimed under the Annual Investment Allowance have undergone a number of changes.