The £1M Annual Investment Allowance (AIA) remains in force on qualifying plant and machinery purchases.
“Full Expensing” was first announced in the Spring 2023 budget and was made permanent in the Autumn Statement 2023. Full Expensing is only of benefit to companies whose expenditure exceeds the £1M AIA threshold.
Full Expensing enables companies who invest in brand new plant and machinery to qualify for 100% tax relief in the year of spend. There are certain expenditures that don’t currently qualify for Full Expensing, including cars and also plant and machinery that is hired out without an operator.
It was announced today that Full Expensing will be extended to assets that are hired out/leased without an operator.
Draft legislation will be published shortly and this extension to Full Expensing should be introduced “when fiscal conditions allow”.
Please click here to go back to our full Spring Budget 2024 analysis.
