This means that there is now just two months left to take advantage of the increased limit. If you are thinking of incurring large items of capital expenditure for your business (over £200,000) the timing of such a move should be carefully considered. This may mean looking at accelerating plans, where possible, to incur expenditure before the end of the year and maximise relief.

There are transitional rules for businesses whose accounting periods span the operative date of any changes. If the basis AIA changed in the period for which a claim is being made the AIA must be time-apportioned accordingly.

The AIA is available for most assets purchased by a business, such as machines and tools, vans, lorries, diggers, office equipment, building fixtures and computers. The AIA does not apply to cars.