What is full expensing?

Full expensing is a UK capital allowance tax scheme, introduced in 2023, allowing companies to deduct 100% of the cost of new and unused plant and machinery from their taxable profits in the year of purchase instead of spreading it across multiple tax years.

This enables companies to write off the cost of investing in qualifying plant and machinery in one go, resulting in a tax saving of up to 25p for every £1 spent.

This scheme replaces super-deduction capital allowance that expired on March 31, 2023, to encourage UK companies to invest more in modern plant, tools, machinery, and technology.

Qualifying plant and machinery ranges from forklift trucks and warehousing equipment to office equipment and vehicles such as lorries and vans.

We highly recommend that businesses considering purchasing from Forkway seek further guidance from HM Revenue & Customs.

Additionally, please feel free to contact Forkway on 0844 854 8899 or via email at info@forkway.co.uk for further information.

If you have any questions about full expensing, HMRC can assist you via email at contact.capitalallowances@hmrc.gov.uk.

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