Annual Investment Allowance (AIA) to be cut from £500k to just £25k!

Acting now will allow for lead times of several months on large & complex investments such as air conditioning systems, which could include R22 replacement, before the valuable AIA tax break is ‘slashed’ next year. “Use it or lose it” is the message.

Space Air customers are encouraged to use this information when negotiating/closing prospective orders. It is also worth noting that the AIA tax break can also be factored-in to lease hire/lease purchase finance arrangements (with which Space Air can also help!)

What Qualifies?

“Plant & Machinery” can include:
- Integral features of a building such as air conditioning and air cooling systems, space and water heating systems as well as lifts, escalators and lighting systems.
- Building alterations to accommodate the above.

The government is hoping that SMEs will take advantage of the current AIA Enhanced Capital Allowance to increase or bring forward their capital expenditure plans.


The Annual Investment Allowance currently means that businesses can claim 100% of their investment in certain plant & machinery, up to a capped limit of £500,000, in the 1st year of that investment. From January 2016 this allowance is being reduced to just £25,000.


Note: Air Conditioning equipment does NOT have to be on the Energy Technologies List (ETL) to qualify for AIA but claims cannot include both the AIA and the ETL on the same equipment.


For further information about the AIA Please visit the HMRC website: or call us on 0333 0069 755, email & follow us on Twitter @SpaceAircon

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