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, known also 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

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Class 4 national insurance contributions

Class 4 national insurance contributionsWhat is Class 4 NIC?Class 2 and Class 4 national insurance contributions (NIC) are paid by self-employed individuals and partners in a partnership on their profits arising within the UK. This guidance note considers Class 4 contributions. For Class 2

14 Jul 2020 11:13 | Produced by Tolley Read more

Corporation Tax

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Steve Collings Read more

Corporation Tax

Indexation allowance and rebasing

Indexation allowance and rebasingThis guidance note explains the general rules surrounding the availability of indexation allowance (which was frozen at December 2017) on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview

14 Jul 2020 11:59 | Produced by Tolley Read more

First year allowances