ARTICLE · 27 NOVEMBER 2023

A Guide To Full Expensing For British Businesses

Price Bailey

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It was no surprise that the Government announced the extension and permanence of full expensing in the 2023 Autumn Statement.

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Matthew H Jones

It was no surprise that the Government announced the extension and permanence of full expensing in the 2023 Autumn Statement. This bold fiscal measure, which came into effect in April 2023 and was originally intended to end in March 2026, is intended to boost business productivity, growth and investment by offering up to 100% first-year allowance on qualifying plant and machinery purchases. In light of the announcement to make full expensing a permanent measure, we provide up to date guidance on how full expensing works and its benefit to British businesses.

From Super Deduction to Full Expensing

In order to best understand full expensing, it is helpful to set it within the context of the previous Super Deduction, which came to an end in April 2023. Initially introduced as a response to the corporation tax rate increasing from 19% to 25%, the Super Deduction offered an increased upfront 24.7% saving before the increase in the main rate of Corporation Tax. This

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