Tim Palmer outlines ‘full expensing’, the new and valuable 100% capital allowances for companies, which commenced on 1 April 2023.
Companies incurring expenditure on plant and machinery from 1 April 2023 until 31 March 2026 will be entitled to claim 100% first year allowances (FYAs) relating to this category of capital expenditure.
Why has full expensing been introduced?
Full expensing has been introduced by the government to encourage UK companies to increase their investment in modern equipment, plant, machinery and technology.
Business investment has been a long-standing weakness in the UK. However, this new relief does encourage companies to bring forward their planned capital expenditure as they gradually recover from the Covid 19 pandemic. Expensing will be popular with companies because of its simplicity and incredible generosity (it has
