Capital allowances: full expensing: As announced at Spring Budget 2023, the government will legislate in Spring Finance Bill 2023 to introduce full expensing for the next three years which will drive investment and growth. Government's vision for the UK to be the best place in Europe for companies to locate, invest and grow. This makes the UK the joint most competitive capital allowances regime in the OECD. Companies incurring qualifying expenditure on the provision of new plant and machinery on or after 1 April 2023 but before 1 April 2026 will be able to claim one of two temporary first-year allowances. These allowances are:
- a 100% first-year allowance for main rate expenditure – known as full expensing; and
- a 50% first-year allowance for special rate expenditure.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
