Government permanently extends Annual Investment Allowance (AIA) limit

Shaun Davison

In his Autumn Statement, the Chancellor Jeremy Hunt confirmed the Annual Investment Allowance (AIA) will be extended at the level of £1 million permanently.


With the AIA amount having changed several times over the past decade, the standard AIA, previously set at £200,000, was temporarily increased to £1 million from January 2019 but was due to revert back to its level of £200,000 after March 2023.

To support businesses to invest and grow, the government is setting the AIA at its highest ever permanent level of £1 million from 1 April 2023.

The AIA is a form of tax relief (capital allowance) that is available for businesses investing in plant and machinery, enabling them to make a full tax deduction for qualifying capital expenditure up to an annual maximum. 

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