100% first-year allowances

If you buy an asset that qualifies for 100% first-year allowances you can deduct the full cost from your profits before tax.

You can claim 100% first-year allowances in addition to annual investment allowance (AIA), as long as you do not claim both for the same expenditure.

What qualifies

You can claim ‘enhanced capital allowances’ (a type of 100% first-year allowance) for the following equipment, which must be new and unused:

  • electric cars and cars with zero CO2 emissions
  • plant and machinery for gas refuelling stations, for example, storage tanks, pumps and refuelling equipment for gas, biogas and hydrogen
  • zero-emission goods vehicles
  • equipment for electric vehicle charging points
  • plant and machinery for use in a special tax site in UK Freeports or Investment Zones, if you’re a company

If you’re a company investing in plant or machinery

You may be able to claim full expensing or the 50% first-year allowance as well. But you cannot claim more than one allowance against the same expenditure.

You cannot normally claim on items your business buys to lease to other people or for use within a home you let out.

How to claim

Claim on your tax return.

If you do not claim all the 100% first-year allowances you’re entitled to, you can claim the part of the cost you have not claimed using writing down allowances.