AIA allows the company 100% tax relief in the first year that capital equipment has been purchased.

The initial limit was £50,000

The limit was increased in April 2010 to £100,000

The limit was reduced in April 2012 to £25,000

The limit is now to be increased from 1 January 2013 to £250,000

If you are intending to make significant capital investments you should consider the timing of when these are made for make best use of the AIA available to you. If you think that this applies to you and would like to discuss this further please contact Green Accountancy.