What alternatives are available to Annual Investment Allowance?
Alternatives include full expensing, 50% and 40% first-year allowances, specific 100% first-year allowances and writing down allowances. Eligibility depends on your business structure, the asset and the purchase date.
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.
Choose the allowance that fits
If AIA is unavailable or has been used up, other capital allowances may still give tax relief. Companies can consider full expensing for qualifying new main-rate equipment, or a 50% first-year allowance for qualifying new special-rate equipment. A 40% first-year allowance applies to qualifying new main-rate equipment bought from 1 January 2026. Specific 100% first-year allowances cover certain purchases, including qualifying new zero-emission cars. Writing down allowances spread relief over later periods. Each option has its own conditions and exclusions. You cannot claim twice for the same expenditure. CASS can compare the available allowances and their timing using the details of your planned purchase.
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