Are you aware of the new capital allowance changes?

Download your free capital allowance brochure

Significant changes to Capital Allowances were announced at Autumn Budget 2025, including the introduction of a new 40% First Year Allowance (FYA) for qualifying main-rate plant and machinery expenditure. Now in force from 1 January 2026, these changes create new opportunities for tax relief while also altering the wider capital allowances landscape.

Our concise brochure explains what’s changed, why it matters, and how businesses can make the most of the available reliefs. It covers key updates including the new 40% FYA, the reduction in main rate writing down allowances to 14% from April 2026, and how the new FYA interacts with full expensing and the Annual Investment Allowance.

The new 40% FYA:

• Applies to qualifying main-rate plant and machinery acquired on or after 1 January 2026
• Is available to businesses investing in assets for leasing, which did not qualify for full expensing
• Can be claimed by unincorporated businesses, including sole traders and partnerships
• Is a permanent measure, providing greater long-term certainty for capital planning

Full expensing remains available to incorporated businesses, allowing a 100% deduction in the year of acquisition. With multiple reliefs now operating alongside each other, careful planning will be essential to ensure capital expenditure is structured in the most tax-efficient way.

Whether you are reviewing upcoming investment or planning ahead for the new writing down allowance rates from April 2026, this guide provides a clear overview to help you understand your options and next steps.

To download our Capital Allowances factsheet enter your full name and email address below to view the PDF and understand the changes and how Moore South can support you in maximising available capital allowances.