Capital allowances

Copyright © 2025 LexisNexis

FORTHCOMING CHANGE: At Spring Budget 2024, the previous Conservative government confirmed that it would publish draft capital allowances legislation for consultation to seek views on a potential extension of full the expensing allowances (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:

  1. •

    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 and unused main plant and machinery and the 50% first-year allowance for companies on qualifying new and unused special rate plant and machinery), as well as the £1m annual investment allowance, writing down

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Tax News

Ex-solicitor hit with first individual tax avoidance stop notice

Law360, London: HMRC has ordered a struck-off solicitor to stop promoting two tax avoidance schemes, the first notice of its kind issued against an individual, the tax authority said on 15 May 2025.

UK crime agency's tax penalties upheld in laundering case

Law360: The UK's National Crime Agency (NCA) can collect £900,000 in tax and penalty assessments from a married couple on income the agency claims they gained through money laundering without proving there was an actual tax loss, the Upper Tribunal ruled.

Tax weekly highlights—15 May 2025

This week's edition of Tax weekly highlights includes: (1) the publication of HMRC’s new cryptoasset reporting guidance, (2) HMRC announcing an administrative easement in respect of certain R&D claims, (3) the publication of a new FTT ADR Practice Statement and (4) News Analyses on the Tax update spring 2025 announcements on the stamp taxes on share modernisation initiative and the measures intended to modernise HMRC’s systems and processes.

FTT determines VAT zero-rating did not apply to construction of mental health unit (NHS Ayrshire & Arran Health Board v HMRC)

Tax analysis: In NHS Ayrshire & Arran Health Board v HMRC, the First-tier Tax Tribunal (FTT) found that the construction of a secure mental health unit for children did not qualify for zero-rating as it was classified as part of a ‘hospital or similar institution’.

View Tax by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

R&D capital allowances

R&D capital allowancesFORTHCOMING CHANGE: At Spring Budget 2021, the government announced a wide-ranging review of research and development (R&D) reliefs, beginning with a consultation exploring the nature of current private sector R&D investment and the impact of existing R&D relief

When would preference shares fall under the shares as debt rules and hence the dividend payments would

When would preference shares fall under the shares as debt rules and hence the dividend payments would fall to be taxed as debt as opposed to qualifying for the corporation tax exemption for dividend payments?The ‘shares as debt’ rules applied to shares held by companies up until 21 April 2009 (for

Qualifying charitable donations and excess management expenses

Qualifying charitable donations and excess management expensesAll companies within the charge to corporation tax can deduct qualifying charitable donations from their total profits, after all other deductions have been made (other than group relief and group relief for carried-forward losses) to

Capital gains—intra-group asset transfers

Capital gains—intra-group asset transfersSTOP PRESS—Impact of the Retained EU Law (Revocation and Reform) Act 2023: This document contains references to retained EU law (REUL) and associated terms introduced by the European Union (Withdrawal) Act 2018 in connection with Brexit. From 1 January 2024,
R&D capital allowances

R&D capital allowances

R&D capital allowancesFORTHCOMING CHANGE: At Spring Budget 2021, the government announced a wide-ranging review of research and development (R&D) reliefs, beginning with a consultation exploring the nature of current private sector R&D investment and the impact of existing R&D relief

When would preference shares fall under the shares as debt rules and hence the dividend payments would

When would preference shares fall under the shares as debt rules and hence the dividend payments would

When would preference shares fall under the shares as debt rules and hence the dividend payments would fall to be taxed as debt as opposed to qualifying for the corporation tax exemption for dividend payments?The ‘shares as debt’ rules applied to shares held by companies up until 21 April 2009 (for

Qualifying charitable donations and excess management expenses

Qualifying charitable donations and excess management expenses

Qualifying charitable donations and excess management expensesAll companies within the charge to corporation tax can deduct qualifying charitable donations from their total profits, after all other deductions have been made (other than group relief and group relief for carried-forward losses) to

Capital gains—intra-group asset transfers

Capital gains—intra-group asset transfers

Capital gains—intra-group asset transfersSTOP PRESS—Impact of the Retained EU Law (Revocation and Reform) Act 2023: This document contains references to retained EU law (REUL) and associated terms introduced by the European Union (Withdrawal) Act 2018 in connection with Brexit. From 1 January 2024,