--- title: "AIA Tax Relief in Cardiff | Luminaire Accounts" description: "Claim Annual Investment Allowance (AIA) on equipment and fit-outs. We calculate the right capital allowances and file the claim with HMRC." canonical: "https://hlsaccounting.co.uk/services/tax-relief-on-business-assets-aia" --- Tax Services - Business # Tax Relief on Business Assets (AIA) We help small businesses across Cardiff and South Wales claim the tax relief they're entitled to on equipment and machinery, often saving thousands on their next bill. Our team makes sure you get every penny of Annual Investment Allowance you qualify for, with none of the confusion. [Book a free consultation](https://calendly.com/hlsaccounting/new-client-meeting) £1m AIA limit per year 100% First-year deduction 10+ Years serving South Wales ![A small business owner and an accountant review asset purchases and paperwork at a desk in a clean office, with the accountant pointing to documents and a calculator while the owner looks relieved.](/_next/image?url=%2Fapi%2Fmedia%2Ffile%2Fbusiness_owner_accountant_assets_desk.jpg%3Fv%3D1773064220104&w=1536&q=75&dpl=dpl_DEc4fGhEc1SCRZZutzoEsRuDy1CJ) ## Making the most of your investment Annual Investment Allowance is just one way to reduce your tax bill when you invest in your business. We'll help you find every relief and allowance that applies to your situation. ### Plant and Machinery Claims Full relief on production equipment, tools, and commercial vehicles bought for your business. ### IT and Office Equipment Immediate deductions on computers, servers, desks, and everything else that keeps your office running. ### Capital Allowances Planning Strategic advice on timing purchases to maximise relief across accounting periods. ### Writing Down Allowances Tax relief on spending over the £1 million AIA limit, claimed at 18% or 6% per year. ## How we help you claim Annual Investment Allowance Annual Investment Allowance lets you deduct the full cost of qualifying business assets from your taxable profits in the year you buy them, up to £1 million per accounting period. That means if you spend £50,000 on a new van, machinery, or IT equipment, you can knock £50,000 off your profit before tax. We make sure you claim everything you're entitled to, whether you're a sole trader buying your first work vehicle or a growing company kitting out a new workshop. The process starts with a conversation about what you've bought or plan to buy. We check which items qualify (most plant, machinery, commercial vehicles, and office equipment do), record them correctly in your accounts, and claim the relief in your Corporation Tax or Self-Assessment return. You'll need to keep your invoices for at least six years, and we'll flag anything that doesn't qualify, like cars or assets you use personally. > Most of our Cardiff clients don't realise how much tax relief is sitting in their recent purchases until we review their accounts. More information Common concerns include whether second-hand equipment qualifies (it does, as long as it's for business use) and what happens if you later sell an asset you've claimed for (you may owe some tax back on the proceeds). If your spending exceeds the £1 million limit, we'll apply Writing Down Allowances to the excess at 18% or 6% per year, depending on the asset type. We also check whether you can combine AIA with other reliefs like First-Year Allowances for energy-efficient kit. ### What's included - Review of all asset purchases in your accounting period - Identification of qualifying plant, machinery, and equipment - Accurate claim preparation in your tax return - Advice on timing purchases to maximise relief - Guidance on record-keeping and HMRC compliance We work with tradespeople, retailers, salons, and small manufacturers right across South Wales, from Pontypridd to Newport. Many of our clients are at the stage where they're reinvesting profits into better equipment or a bigger premises, and AIA can make a real dent in the tax bill that comes with growth. Whether you're based in Riverside, Roath, or further out in the Valleys, we'll make sure your investment works as hard as possible. If you've bought qualifying assets in the past year and haven't claimed AIA yet, it's not too late. Get in touch and we'll review your accounts to see what relief you're owed. ### Ready to claim? Book a free consultation and we'll review your recent purchases to see what relief you qualify for. [Book a free consultation](https://calendly.com/hlsaccounting/new-client-meeting) ### You might also like - [SEIS (Seed Enterprise Investment Scheme) Advice](/services/seis-seed-enterprise-investment-scheme-advice)→ - [Enterprise Investment Scheme (EIS) Advice](/services/enterprise-investment-scheme-eis-advice)→ - [Patent Box Tax Relief](/services/patent-box-tax-relief)→ ## Worth considering Tax Services - Business ### HMRC Enquiry & Investigation Support Support with HMRC enquiries and investigations, from the first letter to the final outcome. We organise records, manage deadlines, and deal with HMRC on your behalf. [HMRC Enquiry & Investigation Support→](/services/hmrc-enquiry-and-investigation-support) Tax Services - Business ### Business Tax Planning Plan ahead for Corporation Tax or Self Assessment, forecast what you will owe, and use allowances, expenses and profit extraction sensibly. [Business Tax Planning→](/services/business-tax-planning) Tax Services - Business ### R&D Tax Credits Claim R&D Tax Credits without the stress. We confirm eligibility, calculate qualifying costs, write the supporting report, and submit the claim with your Corporation Tax return. [R&D Tax Credits→](/services/randd-tax-credits) Tax Services - Business ### Corporation Tax Planning Get a clear estimate of your company’s corporation tax, plan director pay and spending, and avoid nasty surprises at year end with practical, plain-English advice. [Corporation Tax Planning→](/services/corporation-tax-planning) Tax Services - Business ### Corporation Tax Returns CT600 and iXBRL preparation and filing for limited companies, with clear tax calculations, allowance checks, and deadline tracking so you stay compliant and avoid surprises. [Corporation Tax Returns→](/services/corporation-tax-returns) ## Before you claim These are the questions we hear most often from South Wales business owners looking to claim Annual Investment Allowance. What counts as plant and machinery for AIA? Most equipment you use in your business qualifies: production machinery, tools, commercial vehicles like vans and lorries, IT hardware, office furniture, and fixtures. Cars, land, and buildings don't qualify, and the asset must be used for business, not personal use. Can I claim AIA on second-hand equipment? Yes, as long as you're using it for your business and you didn't buy it from a connected party like a family member or another company you control. New and used items are treated the same way. What happens if I spend more than £1 million in a year? You'll claim the full £1 million under AIA, and the excess goes into a Writing Down Allowance pool where you can claim 18% or 6% per year depending on the type of asset. We'll calculate the split for you. Do I need to claim AIA in the year I buy the asset? Yes, you claim it in the accounting period when you incur the cost, which is usually when you take ownership or the invoice is raised. If you miss it, you may lose the relief, so it's worth getting your accounts done properly. What if I use the equipment for both business and personal use? You can still claim, but only for the business proportion. For example, if you use a van 80% for work and 20% privately, you'd claim 80% of the cost. We'll help you work out a fair split. How long do I need to keep records for AIA claims? HMRC requires you to keep purchase invoices and records for at least six years from the end of the accounting period. We can store digital copies for you as part of our bookkeeping service. Can I claim AIA if I'm a sole trader or partnership? Absolutely. AIA is available to companies, sole traders, and partnerships. The relief works the same way, claimed through your Self-Assessment or Corporation Tax return. What happens if I sell an asset I've already claimed AIA on? When you dispose of the asset, you may need to pay some tax back on the sale proceeds through a balancing charge. We'll calculate this for you and make sure it's handled correctly in your accounts. ## Let's make sure you're claiming everything Book a free consultation and we'll review your business spending to identify every relief and allowance you qualify for. [Book a free consultation](https://calendly.com/hlsaccounting/new-client-meeting)