End of the AIA transitional limit – Beware of the traps
20 October 2021
The annual investment allowance (AIA) allows you to claim an immediate deduction against your profits for qualifying capital expenditure up to the available limit. The AIA limit was temporarily increased from £200,000 to £1 million from 1 January 2019, and was due to expire 31 December 2021.
However, the £1 million limit has now been temporarily increased to £1 million until 31 March 2023.
Companies
Companies incurring qualifying expenditure in the period 1 April 2021 to 31 March 2023 may be better claiming the super-deduction than the AIA. The super-deduction is not available to unincorporated businesses.
