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

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

Personal Tax

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more

Personal Tax

Inter-spouse transfer

Inter-spouse transferIntroductionWhen a chargeable asset is transferred between two spouses or civil partners, there is a disposal by the transferor spouse / civil partner and an acquisition by the transferee spouse / civil partner for capital gains tax purposes. For simplicity, spouses and civil

14 Jul 2020 12:01 | Produced by Tolley Read more

Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more

First year allowances