As noted in ¶236-410, when the temporary increase in the AIA ceased on 31 December 2015 the maximum AIA became £200,000 for expenditure incurred on or after 1 January 2016 (Finance (No. 2) Act 2015, s. 8).

Transitional measures applied to a chargeable period that begins before 1 January 2016 and ends on or after that date. In the legislation, such a period is referred to as ‘the second straddling period’.

Under these transitional measures, the overall maximum was calculated on a time-apportioned basis, but the maximum AIA for the period from 1 January 2016 was restricted to the maximum allowance that would have been due if the chargeable period began on that date.

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