Kevin Read explains the Finance Bill 2025-26 changes affecting writing down allowances and leasing companies.
Over the decades, capital allowances for plant and machinery (P&M) have been one of the areas of tax that has undergone continual change. Following the abolition of the ‘super-deduction’ (i.e., 130% relief for qualifying expenditure) in April 2023, we seem to have entered an era of relative stability.
Since 1 April 2023, ‘full expensing’ (i.e., a first-year allowance (FYA) of 100%) has been available to companies that invest in new, unused P&M that would go in the general pool. There is a 50% FYA for special rate
