5x More Tax Relief under the Annual Investment Allowance (AIA)

Are you an SME who hasn’t yet spent the full Annual Investment Allowance for the financial year ending 5th April? Have you thought about optimising that allowance by investing in your office space? You won’t be able to carry over any of the unspent allowance to next year!


What is the Annual Investment Allowance?

The Annual Investment Allowance is a way to claim 100% tax relief on many of the assets that your business buys. The legislation that covers this is called “capital allowances”.

How much can you spend and claim 100% tax relief?

The great news!  It’s been increased from £200,000.00 to £1,000,000.00 per annum from 1st January 2019.  The great news is that the deadline has been extended to 1st January 2022 to compensate for the negative impact from Covid.


Does office furniture qualify?

Yes – all kinds of office furniture can qualify for the AIA.

Does office fit out qualify?

If it isn’t considered part of the fabric of the building, it qualifies for the AIA. Examples of some of the qualifying and non-qualifying works are below:

Qualifying for AIA:

  • Demountable partitioning
  • Sound insulation
  • Fire and burglar alarms
  • Decoration
  • Non-structural suspended ceiling
  • Furniture
  • Kitchen & WC fittings
  • Appliances
  • Computers & IT
  • Audio visual equipment
  • Covid screens

Non Qualifying 

  • Electrics
  • Plumbing
  • Structural work
  • Lifts
  • Air-conditioning & ventilation
  • Metal stud partitioning

*The above is an overview of the AIA and not exhaustive. Please consult your tax advisor for advice in your circumstances.

Should you find yourself considering a an office redesign, Accolade Commercial Interiors can help. Our experts have years of experience when it comes to commercial design and office fit outs. For more information on our services, simply contact us today.