Capital allowances

Capital allowances

FORTHCOMING CHANGE: At Spring Budget 2024, the previous Conservative government confirmed that it will publish draft capital allowances legislation for consultation to seek views on a potential extension of full expensing (ie the 100% first-year allowance for main rate plant and machinery assets) and the 50% first-year allowance for special rate assets to include plant and machinery assets for leasing. In addition, that government announced at Autumn Statement 2023 its intention to consult on the wider legislative implications of the introduction of these first-year allowances.

For more information, see News Analysis: Autumn Statement 2023—Tax analysis and Spring Budget 2024—Tax analysis.

Autumn Budget 2024, which was delivered by the current Labour government on 30 October 2024, included the following relevant developments:

•
commitments made in the Corporate Tax Roadmap 2024 to maintain, for the duration of the Parliament, the permanent full expensing allowances (ie the 100% first-year allowances for companies on qualifying new main plant and machinery and the 50% first-year allowance for companies on qualifying new special rate plant and machinery), as well as the £1m annual investment allowance, writing down allowances for plant and machinery

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