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.