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Tax ReliefUK-wide

Full Expensing (100% First-Year Capital Allowance)

HM Revenue & Customs

Description

Permanent 100% first-year Corporation Tax capital allowance letting companies deduct the full cost of qualifying new plant and machinery from taxable profits in the year of purchase, rather than spreading relief over several years. Successor to the temporary 130% 'super-deduction' that ran April 2021–March 2023.

Amount

100% relief on qualifying new plant/machinery investment (worth 25p off the Corporation Tax bill per £1 spent at the 25% main rate); no upper limit

Deadline

Rolling / no fixed deadline

Eligibility summary

  • Available across the whole UK (England, Scotland, Wales, and Northern Ireland).
  • Applicant must be a registered business.
Notes
Made permanent at the Autumn Statement 2023, alongside a 50% first-year allowance for new 'special rate' assets (e.g. integral features, long-life assets) — both apply with no expiry date.
Requirement
Only available to companies within the charge to Corporation Tax (sole traders and partnerships use the Annual Investment Allowance instead); excludes second-hand assets, assets bought for leasing, and cars.

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How to apply

Claim via your Corporation Tax return (CT600) in the accounting period the qualifying expenditure is incurred.

View official source

Last verified: 1 August 2026. See the footer disclaimer — this is general information, not financial or tax advice.