Annual Investment Allowance (AIA)
HM Revenue and Customs
Worth
No set amount
Tax relief
Deadline
Rolling - no fixed deadline
Type of funding
Tax relief
Where
UK-wide
What it is
A tax relief, not a grant: you can deduct the full cost of most equipment and machinery (up to £1 million a year) from your profits before tax, in the year you buy it. The money you keep is the tax you would otherwise have paid on that amount.
Checked 6 Nov 2026 on GOV.UK: the AIA limit is £1 million per accounting period; it covers most plant and machinery but not business cars, leased items, land or buildings; it must be claimed on the tax return for the period you bought the item; the £1 million is a deduction from profits, not cash.
Official sourceWho can apply
A summary of the main rules, not the full list. HM Revenue and Customs decides who is eligible, so read their guidance before you apply. The free scan checks these against your own business.
- You're buying equipment, machinery, vans or other plant (not cars, land or buildings)
How to apply, in brief
You or your accountant, on your Self Assessment return (sole trader), partnership return, or Company Tax Return with a capital allowances calculation (limited company).
- 1Check the item counts as plant and machinery
- 2Work out which period the purchase falls in
- 3Adjust the limit if your period is not 12 months
- 4Claim it on your tax return
The full guide, with what to do at each step, the official link for it and a draft to work from, is part of the £19.95 report.
Common questions
- Is Annual Investment Allowance (AIA) open for applications?
- Yes. It is open for applications, with no fixed deadline.
- How much is Annual Investment Allowance (AIA) worth?
- There is no single published figure: what you get depends on your project and the funder's assessment. It is a tax relief.
- Who runs Annual Investment Allowance (AIA), and where is it available?
- HM Revenue and Customs runs it. It is available across the UK.
- How do I apply for Annual Investment Allowance (AIA)?
- You or your accountant, on your Self Assessment return (sole trader), partnership return, or Company Tax Return with a capital allowances calculation (limited company).
Does your business qualify?
Eligibility rules are where schemes get fiddly. Gov Owed checks your business against Annual Investment Allowance (AIA) — and every other UK scheme we track — in about two minutes, free. The £19.95 report then explains exactly why you qualify, drafts your answers and walks you through the real application step by step.
Check my businessNo sign-up to scan · keep 100% of anything you win · re-runs free for 12 months
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Information, not financial advice; eligibility is decided by the funder. Contains public sector information licensed under the Open Government Licence v3.0. Schemes change — confirm details on the official page before applying.