About the Annual Investment Allowance | Lombard

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Annual Investment Allowance

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Annual Investment Allowance: helping businesses grow

 

The Annual Investment Allowance has risen to £1m from January 2019 and is fixed until the end of 2020. This is a significant boost to businesses looking to invest in capital equipment over the next two years.

 

What is the Annual Investment Allowance?

 

The Annual Investment Allowance (AIA) lets the business deduct the cost of certain assets from their taxable profits. This means, in theory, that companies can deduct up to £1m from their taxable profits, saving a substantial amount of money as long as they have invested the money in qualifying expenditure.

You can claim AIA on most assets purchased for use by businesses. It also applies to hire purchase, although not lease-based assets.

Qualifying expenditure covers most purchases of plant and machinery including building parts and fixtures, some vehicles (though not cars for private use), heating systems, lifts, air conditioning, lighting systems and specialist equipment integral to running your business.

Items must be bought and owned, not rented or gifted to you, and if you end up selling an item that benefited from AIA, then you may have to pay tax subsequently.

Why choose Lombard?

At Lombard, lending is all we do, and we’ve been doing it for over 150 years. We are here to support your business with the Annual Investment Allowance. We provide asset finance for firms of all sizes, from small family concerns to large commercial enterprises and across sectors, from manufacturing to renewable energy, technology, agriculture and vehicles and fleets.

Expert guidance

Our relationship managers across the UK combine local knowledge with financial expertise and hands-on experience

Consistency

Delivering a dependable service to all customers, irrespective of funding scope or scale

Flexible funding

You can rely on our proactive attitude to lending to produce the flexible finance your business needs, when you need it

Trusted partner

Acting as a trusted partner, answering your questions and focusing on your best interests

About the Annual Investment Allowance | Lombard Get in touch

 

Want to utilise your AIA?

 

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About the Annual Investment Allowance | Lombard

 

 

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Eligible assets listed below

 

  • Plant & machinery 
  • Office furniture & qualifying equipment
  • Vans, trucks, cranes & diggers
  • Business machines e.g. printing press
  • Lathes & tooling machines
  • Tractors, combine harvesters & other agricultural machinery
  • Computer hardware & qualifying software, computerised/computer aided machinery
  • Building fixtures & fittings
  • Wind turbines & optic cabling
  • Gaming machines & amusement rides
  • Driving school cars
  • Ineligible assets include cars, land, buildings (excluding integral features) and existing or gifted assets.

 

 

The AIA amount has changed several times since 2008. If the AIA amount changed during the period you are claiming for, you would need to adjust the amount you can claim. Visit https://www.gov.uk/government/publications/ temporary-increase-in-the-annual-investment-allowance/temporary-increase-in-the-annual-investment-allowance for more information about AIA. For specific tax advice, please speak to your accountant.

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