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

Definition of a close company

Definition of a close companyThe detailed definition of a close company is set out below, but in summary the rules are targeted at those companies where the owners can manipulate the activities of the company to influence their own tax position. Therefore, broadly speaking, in most cases an

14 Jul 2020 11:24 | Produced by Tolley Read more

Corporation Tax

What are connected companies for loan relationship purposes ― practical approach

What are connected companies for loan relationship purposes ― practical approachBrief overview of the rulesThe loan relationships legislation applies to any ‘money debt’ arising from the lending of money entered into by a company, either as a lender or borrower. The rules are contained in CTA 2009,

20 Apr 2021 16:00 | Produced by Tolley Read more

Value Added Tax

Holding companies ― VAT status of activities

Holding companies ― VAT status of activitiesThis guidance note examines how to determine the VAT status of a holding company’s activities. In particular, it looks at:•when a holding company is or is not in business•if a holding company is in business, whether its activities are exempt or taxableThe

14 Jul 2020 17:13 | Produced by Tolley Read more

First year allowances