2026/27 Tax YearHMRC Verified
Annual Investment Allowance (AIA) Calculator
Calculate your tax savings on qualifying plant and machinery purchases using the £1,000,000 AIA limit for 2026/27.
Calculate Your AIA Tax Savings
Enter your capital expenditure and company profit to see your tax relief
Qualifying plant & machinery purchases
Taxable profit before capital allowances
Your AIA Tax Savings
Tax Saving
£11,656
Net Cost After Tax Relief
£38,344
Eligible AIA Amount£50,000
Corporation Tax Rate23.3%
Unused AIA Remaining£950,000
Effective Cost Rate76.7%
About Annual Investment Allowance
What is AIA?
The Annual Investment Allowance (AIA) allows businesses to deduct the full value of qualifying plant and machinery from their profits before tax. For 2026/27, the permanent AIA limit is £1,000,000.
Qualifying Expenditure
- Office equipment and furniture
- Machinery and tools
- Vans, lorries, and commercial vehicles
- Computer equipment and software
- Building fixtures (electrical, heating, plumbing)
Exclusions
- Cars (separate capital allowance rules apply)
- Items given to you or your business
- Items bought before you started your business
2026/27 AIA Rates
AIA Limit£1,000,000
Small Profits Rate19%
Main Rate25%
Source: HMRC Capital Allowances Manual