AIA: what types of assets qualify for relief
What types of asset are covered by AIA relief?
Clients have asked us to clarify the types of assets that are covered by the Annual Investment Allowance (AIA) relief. They include:
- Tools and equipment
- Computers
- Office equipment and furniture
- Computerised machinery
- Vans for business purposes
- Capital expenditure on computer software
- Integral features of a building, such as electrical systems
Items which do not qualify for AIA include:
- Cars
- Walls
- Floors
- Doors
- Windows
- Stairs
The AIA will reduce from £100,000 to £25,000 from 6 April 2012 for unincorporated businesses and from 1 April 2012 for companies.
If your year-end is different from the end of the tax year (31 March 2012 or 5 April 2012) you should make your investment during the trading year that ends in the fiscal year 2011-12. For example, if your year-end is December you should invest before 31st December 2011.