Glossary · UK
What is Full Expensing?
A permanent 100% first-year capital allowance for companies investing in qualifying new plant and machinery.
Full Definition
Full expensing lets companies deduct 100% of the cost of qualifying new (not second-hand) main-rate plant and machinery from taxable profits in the year of purchase, rather than spreading relief over several years through normal writing-down allowances; a 50% first-year allowance applies to qualifying special rate assets such as long-life items and integral building features. It replaced the temporary super-deduction and, unlike the Annual Investment Allowance, has no upper spending cap, though it is only available to companies within the charge to Corporation Tax rather than unincorporated businesses.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.