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 or have recently been 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

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

Allowable expenses for property businesses

Allowable expenses for property businessesGeneral itemsMany of the principles applying to allowable expenses for property businesses are similar to those that apply for trading and the rules for individuals in a property business are generally the same as for companies with some exceptions which are

14 Jul 2020 13:26 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more

Tax Returns

Trusts and Inheritance Tax

Outright gifts

Outright giftsAn outright gift is the most straightforward type of gift. It simply involves the outright transfer of property from one person to another with no conditions attached.This type of gift is most suitable for clients who want to pass over modest amounts, or give to responsible and capable

14 Jul 2020 12:22 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more

Owner-Managed Businesses

Furnished holiday lets

Furnished holiday letsThis guidance note sets out the qualifying conditions for a property let to be treated as a furnished holiday let (FHL) for tax purposes and the subsequent tax implications.Whether or not a property qualifies as an FHL can make an important difference to the taxation

14 Jul 2020 11:46 | Produced by Tolley Read more

First year allowances