Full Expensing (100% Capital Allowance)

100% first-year tax deduction on qualifying plant and machinery, including renewable energy equipment, battery storage, and EV charging infrastructure. This is a tax relief (not a direct grant) that allows you to deduct the full cost of qualifying assets from your taxable profits in the year of purchase.

Funding Amount

100% first-year deduction (effective saving = cost × corporation tax rate of 19-25%)

Deadline

31 March 2026 for full 100% rate; green assets extended to March 2027

Eligibility Checklist

UK tax-resident business

Equipment must be 'plant and machinery'

Equipment must be new and unused

Must be acquired for business purposes

Company or unincorporated business with trading status

Required Documents

1
Invoice and proof of purchase for equipment
2
Evidence equipment is new and unused
3
Corporation tax return (companies) or self-assessment (unincorporated)
4
Asset register showing qualifying equipment

Step-by-Step Application Process

Purchase qualifying plant and machinery (new, unused)

Keep invoices and proof of purchase

Add equipment to your business asset register

Claim the deduction through your corporation tax return or self-assessment

Your tax advisor/accountant handles the actual claim

Key Conditions & Gotchas

!No formal application — claimed through tax return
!After March 2026, rate drops to 50% for most plant and machinery
!Green assets (EV chargers, renewable generation) extended to March 2027
!Only new, unused equipment qualifies (second-hand excluded)
!Equipment must be purchased and in use within the tax year
!Building fabric (walls, roof) does NOT qualify — only plant and machinery
!Battery storage qualifies when acquired with solar or wind

Grant Stacking

Compatible with all other grant schemes — tax relief is separate from capital grants. Can be combined with BUS, WCS, and other direct grants.

Ready to Apply?

Visit the official application portal or book a free consultation with our team.

Official Portal