The chancellor announced at the Autumn Statement 2023 that the government intends to make full expensing permanent.
Introduced at Spring Budget 2023 temporary full expensing allows companies incurring qualifying expenditure on the provision of new plant and machinery on or after 1 April 2023 but before 1 April 2026 to claim:
- a 100% first-year allowance for main rate expenditure; and
- a 50% first-year allowance for special rate expenditure.
Expenditure on plant and machinery for leasing remains excluded from full expensing. The government will publish a technical consultation on draft legislation in due course to help it consider any potential extension to include plant and machinery for leasing which is subject to future decision.
Chris Denning corporate and international tax partner at MHA said this is not a substitute for a clear long-term vision for the UK’s tax system: ‘Making the UK’s fully expensing regime permanent is...
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