Fill in the figures, then click Work out my allowances.
Result
Where the AIA goes, and the next five years
| Year | Deduction | Tax saved | Cumulative |
|---|
What to do
| Step | What it means |
|---|
What it does, and what it leaves to you
- Covers: the Annual Investment Allowance (pro-rated for short periods), full expensing and the 50% allowance for companies, writing-down allowances on the main and special-rate pools, the small pools allowance, and the best order to spend the AIA.
- Gives: this year's deduction, the tax saved at the rate you enter, pool balances carried forward and a five-year run-off.
- Not decided: structures and buildings allowance, disposals and balancing charges, mixed private use, leased assets, first-year allowances for zero-emission cars, R&D, group and connected-party limits, and anything that changed after this was written.
Common questions
What is the Annual Investment Allowance?
A 100% deduction from profit for equipment you buy, up to £1,000,000 a year (scaled for periods shorter than 12 months). It covers most plant and machinery including vans, but not cars.
What is full expensing?
For companies only: a 100% first-year allowance on new, unused main-rate equipment with no cap, and a 50% allowance on new special-rate items. It does not cover second-hand or leased assets, or cars.
Where should the AIA go first?
On the items that would otherwise get the least relief: second-hand equipment and special-rate items such as integral features. A company's new main-rate kit gets 100% from full expensing anyway, so spending the AIA there wastes it.
Why do cars get less?
Cars are excluded from the AIA and go into a pool that is written down by 18% a year, or 6% for higher-emission cars. Some zero-emission cars qualify for a first-year allowance, so check GOV.UK for your accounting period.
Do I have to claim the maximum?
No. You can claim less, for example to avoid creating a loss or to keep more written-down value for a later year when your tax rate is higher.
Is my data uploaded anywhere?
No. Everything is calculated in your browser and nothing is sent.