An important form of capital allowance for commercial business owners is Annual Investment Allowance (AIA). This provides tax relief at 100% on qualifying assets up to a set amount – £200,000 at the moment – for items which you have purchased during your first year of trading.
AIA has some restrictions, which means that you cannot claim for items which you have previously purchased and then move to your commercial premises. Neither can you claim for items which are leased, or which are used for business entertainment. Doors, shutters, gates, mains water and gas supplies, bridges, roads and docks are also exempt.