Annual Investment Allowance

The claim for qualifying plant and machinery expenditure up to the applicable period limit.

Cars do not qualify for AIA

Reviewed · Current · Law · Current reviewed treatment; earlier start date not yet established

Expenditure on a car is excluded from Annual Investment Allowance.

A van or lorry is not automatically a car for this rule. Car treatment instead depends on the applicable first-year or emissions-based pool rules.

Exceptions and branches

• The statutory meaning of car and separate car allowances need their own facts.

Current Annual Investment Allowance maximum

Reviewed · Current · Law · From 1 January 2019

£1,000,000

The annual maximum is £1,000,000 for chargeable periods beginning on or after 1 January 2019.

The maximum is proportionately adjusted for a shorter chargeable period. A company may claim all, part or none, and related businesses can share one maximum.

Exceptions and branches

• Cars are excluded from AIA.
• Short periods reduce the maximum and related businesses can share one maximum.
• A period straddling a historic limit change also restricts expenditure incurred before an increase.

Related concepts

• Capital allowances

• Writing-down and small-pool allowances

• First-year allowances and full expensing

Linked from

• Capital allowances

• Writing-down and small-pool allowances

• First-year allowances and full expensing

Sources

• Capital Allowances Act 2001, section 38B — Section 38B, general exclusion 2. Primary authority.

• Claim capital allowances: Annual Investment Allowance — Current amount, eligible expenditure and exclusions. Official guidance.

• Capital Allowances Act 2001, section 51A — Section 51A(2), (5), (6) and (7). Primary authority.

• CA23085: Annual Investment Allowance claims, amounts and apportionment — Maximum allowance, apportionments, timing and partial claims. Official guidance.

How sources are ranked

Knowledge version: sterling-knowledge@2026-09-11.7. Last checked 11 September 2026.