In accounting, AIA can refer to either the Association of International Accountants or the Annual Investment Allowance, each holding distinct significance in the field.
A capital allowance introduced in April 2008 that enables businesses to offset 100% of their capital expenditure in any one year against corporation tax, up to a specified limit. The allowance is available to businesses of any size or legal form and cannot be claimed on non-commercial motor vehicles.
Capital allowances refer to allowances against UK income tax or corporation tax available to businesses, sole traders, partnerships, or limited companies that have capital expenditures on plant and machinery used in the business.
In the UK, a special capital allowance against corporation tax that is granted in the year of purchase of an asset in place of the standard writing-down allowance of 25%.
