What purchases qualify for Annual Investment Allowance?
Many equipment purchases qualify, including computers, tools, machinery, office furniture and vans. Cars, land and buildings themselves do not qualify for AIA, although certain building fixtures and systems can.
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.
Look at the asset and its use
AIA covers most qualifying plant and machinery used in your business. Common examples include computers, tools, production equipment, office furniture and vans. Land and buildings themselves do not qualify, although certain fixtures and integral systems can be eligible. Cars are excluded from AIA, including electric cars, but may qualify for different capital allowances. Items given to you, or previously owned for another purpose before being brought into the business, do not qualify for AIA. Ordinary leased equipment is generally treated differently from equipment you buy. If you are a sole trader or partnership and also use the item privately, the claim must reflect its business use.
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