healthcheck-step-1 Created with Sketch. 1 image/svg+xml
Business, taken personally.

Agricultural industry to benefit from AIA increase

Posted by Lotty Reeves on 9th July 2014

The maximum amount of tax relief available under the Annual Investment Allowance (AIA) for qualifying purchases made between 6th April 2014 and 31st December 2015 has doubled from £250,000 to £500,000.

AIA is a capital allowance that provides 100% tax relief on qualifying expenditure for agricultural plant and machinery in a specific period against income or corporation tax. According to HM Revenue and Customs (HMRC), increasing the maximum amount of qualifying expenditure that is subject to the tax relief to £500,000 will incentivise firms to increase or bring forward their capital expenditure on plant and machinery and provide a cash flow benefit that is likely to be of most help to small and medium-sized firms.

The announcement has been welcomed by agricultural experts, who claim that it will provide a boost for farmers and other individuals who are considering investment in the agricultural industry. From 1st January 2016, the AIA will be reduced to £25,000. Experts including NFU Mutual, are appealing to the Chancellor to make the increase permanent in his 2015 budget.

Read more about the change to the AIA at


This article is © Endeavour Partnership LLP 2014 and may not be reproduced without our express permission.

This article is a general summary and should not be relied upon in the place of seeking professional advice in respect of any specific situation.

No responsibility can be accepted for any actions based on the information in this article.


Share this post: