Does AIA mean I get the cost of my equipment back?
No. AIA reduces taxable profits rather than refunding the purchase price. The tax saving depends on the tax rate applying to those profits and your business's overall tax position.
These answers provide general information, not advice tailored to your circumstances. Rules can change and exceptions may apply — speak to the CASS team before making a tax, accounting or financial decision.
Understand the actual saving
AIA does not mean HMRC pays for your equipment. It lets you deduct qualifying expenditure when calculating taxable profits. For example, an eligible £10,000 purchase could reduce taxable profits by £10,000. If the tax rate applying to that profit were 25%, the saving would be £2,500. That rate is an illustration, not a promise about your business's tax bill. Losses, other reliefs and your tax position can affect when you benefit. You still need to fund the purchase and meet your other commitments. Before buying, look at what the equipment will contribute to the business as well as the tax saving.
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