Policy paper

New first-year allowance and main rate of writing-down allowances

This tax information and impact note details the new first year allowance and reduction of the main rate of writing down allowances.

• From: HM Revenue & Customs
• Published: 26 November 2025

Documents

Capital allowances: new first-year allowance and reducing main rate writing-down allowances

HTML

Details

This measure introduces a new 40% first year allowance for expenditure incurred on or after 1 January 2026. It reduces the main rate of writing down allowances to 14% from:

• 1 April 2026 for Corporation Tax
• 6 April 2026 for Income Tax

Published 26 November 2025