Value100% first-year corporation-tax deduction on qualifying new main-rate plant & machinery (worth 25p per £1 spent at the 25% main rate), permanent; 50% first-year allowance for special-rate assets; £1M Annual Investment Allowance; new 40% first-year allowance for qualifying main-rate expenditure incurred from 1/1/2026
DeadlinesPermanent (made permanent at Autumn Statement 2023); no claim deadline beyond normal corporation tax return windows
RequirementsUK corporation-tax-paying company; new and unused plant & machinery (solar, storage, chargers, process equipment, LED all typically qualify); claim via corporation tax return
Caveatsexcludes cars, second-hand assets, and most assets for leasing; unincorporated businesses rely on AIA instead; Autumn Budget 2025 cut the main-rate writing-down allowance 18%->14% from April 2026, raising the value of first-year claims — confirm current-year treatment with adviser
Last verified2026-08-24