The Full Expensing Capital Allowance lets you claim back 100% of the cost of qualifying plant and machinery all in one go. Save up to 25p for every £1 you spend.
Most tangible capital assets, besides land, structures, and buildings, used in your business are considered plant and machinery for the purpose of claiming capital allowances. First introduced in the UK Government’s spring budget 2023, the scheme was set to expire on 31 March 2026, but it was made permanent in the Chancellor’s Autumn Statement in November 2023. Full expensing is here to stay.
Full expensing in the UK enables companies to fully deduct the entire expense associated with new and unused plant and machinery from their taxable profits within the year of acquisition. This system has supplanted the former super-deduction capital allowance, which ceased to be effective as of March 31, 2023. Under full expensing, companies have the advantage of writing off the entire 100% cost of their investment in eligible plant and machinery in a single fiscal year, resulting in potential tax savings of up to 25p for every £1 spent. Importantly, there are no restrictions on the minimum or maximum amount of investment, allowing businesses to claim full expensing relief for all qualifying expenditures.
Plant and machinery that may qualify for full expensing include (but are not limited to):
- Air Compressors
- Nitrogen Generators
- Blowers
- Chillers
- Warehousing equipment such as forklift trucks, pallet trucks, shelving and stackers
- Tools such as ladders and drills
- Construction equipment such as excavators, compactors, and bulldozers
Not only is this a vital allowance but it is a great benefit!
While looking at your budgets for next year, why not call us to see how we can help you save more money?
