First year allowances

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

Autumn Budget 2025

First year allowances

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

Autumn Budget 2025

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 rate	100% allowance, companies only, also known as ‘full expensing’
New plant and machinery which would qualify for the special rate	50% allowance, companies only
New main rate plant and machinery	40% allowance, all businesses (from 1 January 2026)
New and unused cars with low CO2 emissions, or electric cars	100% (to 31 March 2027 corporation tax, 5 April 2027 income tax)
New and unused zero-emission goods vehicles	100% (to 31 March 2025 corporation tax, 5 April 2025 income tax)
New electric vehicle charging points	100% (to 31 March 2027 corporation tax, 5 April 2027 income tax)
Gas refuelling stations	100% (to 31 March 2025)
Plant and machinery used in Freeport sites	100% (see sunset dates below)
Plant and machinery used in investment zones	100% (see sunset

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