Full Expensing Calculator 2026/27
Calculate 100% first-year capital allowances on qualifying plant and machinery investments. Full expensing was made permanent from April 2023, allowing companies to deduct the full cost of qualifying assets.
100% Full Expensing (Main Pool)
- • Plant and machinery
- • Computer equipment
- • Office furniture
- • Vans and commercial vehicles
- • Manufacturing equipment
- • Construction tools
50% First Year Allowance (Special Rate)
- • Integral features (lifts, escalators)
- • Long-life assets (25+ years)
- • Thermal insulation
- • Solar panels
- • Electrical systems
- • Air conditioning units
What is full expensing?
Full expensing allows companies to deduct 100% of qualifying plant and machinery costs from taxable profits in the year of purchase. Made permanent from April 2023, it replaced the temporary super-deduction.
Who can claim full expensing?
Only companies subject to Corporation Tax can claim. Sole traders and partnerships cannot use full expensing but may qualify for Annual Investment Allowance (AIA) instead.
What about cars?
Cars do not qualify for full expensing. Electric cars get 100% FYA separately, while other cars go into the main or special rate pool depending on CO2 emissions.
Can I claim full expensing on second-hand assets?
No, full expensing only applies to new, unused plant and machinery. Second-hand assets qualify for WDA or potentially AIA instead.
Tax Tip: Full expensing provides significant cash flow benefits compared to WDA. Time your major capital investments strategically to maximise tax savings in profitable years.
Calculator by Waqas Sagar, Tax Expert
Last updated: January 2025