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HMRC prompts companies to review AIA claims


Published: 20 Feb 2024 Update History

HMRC has written to companies that may need to share their AIA with fellow group members and related companies.
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The annual investment allowance (AIA) is a form of capital allowance. It is subject to an annual cap, which is currently set at £1m (increased from £200,000 from 1 January 2019). The letter asks the recipient to check if their claim is accurate or, where their allowance is shared with multiple companies, if it has been exceeded.  

If a mistake has been made, HMRC advises that it should be corrected by the company or its agent within 30 days of the date of the letter. If the recipient believes that its claim is correct, the recipient or their agent is advised to email HMRC at the dedicated email address or write to the address at the top of the letter. 

However, if the recipient or agent takes no action, HMRC may carry out a compliance check or correct the return under para 16, Sch 18, Finance Act 1998

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