| Year-End Date | AIA for 1st Part of Accounting Period to 31 December 2020 |
AIA for Remainder of AP from 1 January 2021 onwards |
Maximum AIA for AP | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Period 1 | Period 2 | Pd 1 + Pd 2 | |||||||||
| 31 December 2020 | 12 months – 1 Jan 2020 | to 31 Dec 2020 | £1,000,000 | £ 1,000,000 | |||||||
| 31 January 2021 | 11 months – 1 Feb 2020 | to 31 Dec 2020 | £916,667 | 1 month – 1 Jan 2021 | to 31 Jan 2021 | £16,667 | £933,334 | ||||
| 28 February 2021 | 10 months – 1 Mar 2020 | to 31 Dec 2020 | £833,333 | 2 months – 1 Jan 2021 | to 28 Feb 2021 | £33,333 | £866,666 | ||||
| 31 March 2021 | 9 months – 1 Apr 2020 | to 31 Dec 2020 | £750,000 | 3 months – 1 Jan 2021 | to 31 Mar 2021 | £50,000 | £800,000 | ||||
| 30 April 2021 | 8 months – 1 May 2020 | to 31 Dec 2020 | £666,667 | 4 months – 1 Jan 2021 | to 30 Apr 2021 | £66,667 | £733,334 | ||||
| 31 May 2021 | 7 months – 1 Jun 2020 | to 31 Dec 2020 | £583,333 | 5 months – 1 Jan 2021 | to 31 May 2021 | £83,333 | £666,666 | ||||
| 30 June 2021 | 6 months – 1 Jul 2020 | to 31 Dec 2020 | £500,000 | 6 months – 1 Jan 2021 | to 30 Jun 2021 | £100,000 | £600,000 | ||||
| 31 July 2021 | 5 months – 1 Aug 2020 | to 31 Dec 2020 | £416,667 | 7 months – 1 Jan 2021 | to 31 Jul 2021 | £116,667 | £533,334 | ||||
| 31 August 2021 | 4 months – 1 Sep 2020 | to 31 Dec 2020 | £333,333 | 8 months – 1 Jan 2021 | to 31 Aug 2021 | £133,333 | £466,666 | ||||
| 30 September 2021 | 3 months – 1 Oct 2020 | to 31 Dec 2020 | £250,000 | 9 months – 1 Jan 2021 | to 30 Sep 2021 | £150,000 | £400,000 | ||||
| 31 October 2021 | 2 months – 1 Nov 2020 | to 31 Dec 2020 | £166,667 | 10 months – 1 Jan 2021 | to 31 Oct 2021 | £166,667 | £333,334 | ||||
| 30 November 2021 | 1 month – 1 Dec 2020 | to 31 Dec 2020 | £83,333 | 11 months – 1 Jan 2021 | to 30 Nov 2021 | £183,333 | £266,666 | ||||
| 31 December 2021 | £ – | 12 Months – 1 Jan 2021 | to 31 Dec 2021 | £200,000 | £200,000 | ||||||
NOTES
- The maximum expenditure incurred after 1 January 2021 on which AIA can be claimed is capped at the figure in the “Period 2” column.
- For expenditure incurred on/before 31 December 2020 the maximum on which AIA can be claimed is the Maximum AIA for the full Accounting Period.
- Expenditure is incurred on the date on which the obligation to pay becomes unconditional. If you sign an unconditional contract by 31 December 2020 for payment on normal commercial terms within 4 months of the date the contract is signed then AIA can be claimed up to the maximum available for your full accounting period.
- Anti-avoidance provisions apply where an obligation to pay becomes unconditional at an earlier date than would be the case in a normal commercial contract and the sole or main benefit that might be expected to be obtained from the arrangement is that the expenditure would be treated as incurred in an earlier chargeable period.
- Expenditure still to be incurred under a Hire Purchase etc contract at the time when the asset is brought into use is treated as incurred on the date on which the asset is brought into use.