BTAX, AIA limit 2016

Hi everyone,

What is the Annual Investment Allowance (AIA) limit in 2016?

"Business Tax, FA 2015" by Osborne Books, page 6.13 says:

"The AIA limit change from £500,000 to £25,000 occurred on 1 January 2016 for income tax payers (self-employed and partners)"

also, page 3.5:
"...£500,000 per year for CAPs ending on or before 31/12/2015. The limit is £25,000 for CAPs starting on or after 1/1/2016".

However, the HMRC website says the limit from 1 Jan 2016 is not £25,000 but £200,000:
"The AIA amount
The AIA amount is £200,000. This is for 12-month periods from 1 January 2016."

My question is: what is AIA limit in 2016? Is there a mistake in Osborne BTAX textbook, or is there anything I don't understand about Annual Investment Allowance limits?

thank you

Best Answers


  • marcin_karpinski
    marcin_karpinski Registered Posts: 5
    Thank you MarieNoelle

    So if during an exam I need to calculate AIA limit for 2016, should I use £25,000 or £200,000 limit?
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Best you ask your tutor about this or the AAT directly.
    Maybe @James_B can find out for you? :)
  • James_B
    James_B Unregistered / Not Logged In, Registered, Tutor, Affiliate Posts: 33
    Hi, I've asked our assessment team and should get a response tomorrow. Thanks
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