First year allowances

Copyright © 2025 LexisNexis
Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

First year allowances

Copyright © 2025 LexisNexis
Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
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Summary of first year allowances (FYAs)

The following table provides a summary of the first year allowances (FYAs) that are available and the relevant qualifying assets:

Qualifying asset Details and conditions
New plant and machinery which would qualify for the main rate100% allowance, companies only, known also as ‘full expensing’
New plant and machinery which would qualify for the special rate50% allowance, companies only
New and unused cars with low CO2 emissions, or electric cars100%
New and unused zero-emission goods vehicles100% (to 31 March 2025 corporation tax, 5 April 2025 income tax)
New electric vehicle charging points100% (to 31 March 2026 corporation tax, 5 April 2026 income tax)
Gas refuelling stations100% (to 31 March 2025)
Plant and machinery used in Freeport sites100% (see sunset dates below)
Plant and machinery used in investment zones100% (see sunset dates below)

These FYAs are detailed further below together with details of any sunset clauses.

FYAs are only available

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  • 15 Aug 2025 09:30

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