The AIA is a kind of capital allowance, which offers tax relief at 100 per cent on qualifying expenditure in the year of purchase. The maximum you can deduct from your taxable profits is now set to be £250,000.
To qualify for AIA, a business must meet certain criteria. There are also certain exclusions and exemptions. Companies with a group structure require careful tax planning to calculate the best way to split the allowance amongst related businesses.
At New Forest Tax Accountants we can provide you with specialist guidance in this field. If you would like to know more about AIA optimisation or would like to arrange a free initial meeting to discuss in more detail how we can help you, please contact us.