From January 2019, businesses investing in qualifying plant and machinery are able to benefit from a temporary increase in the AIA. The maximum amount of the AIA was temporarily increased to £500,000 at Budget 2014. Summer Budget 2015 set the rate of AIA permanently to £200,000 from 1 January 2016.
This measure temporarily increases the amount of the AIA to £1,000,000 from January 2019 until 1 January 2021 when it will return to £200,000. The increase provides an incentive for those businesses already spending up to the £200,000 threshold to increase or bring forward their capital expenditure on plant and machinery.