There has been a temporary increase in the Annual Investment Allowance (AIA) from £25,000 to £250,000 for capital expenditure incurred on eligible plant and machinery, including both new and used, but not cars. This increase is valid between 1st January 2013 and 1st January 2015, after this time the rate will be reduced back down to £25,000. It is applicable to ALL businesses including sole traders and partnerships.If you are considering buying plant and machinery, we would urge you to do it within this time frame as purchases up to a combined total of £250,000 will attract tax relief of 100%, which can significantly reduce any tax liability.