Home / Questions / What Is Full Expensing?
Last updated 23 October 2026. Written by the Limited Company Accountant UK team, part of Accotax. Figures are for the 2026/27 tax year; always check GOV.UK for the latest rates.
Short answer: Full expensing lets companies deduct 100% of the cost of qualifying new main-rate plant and machinery from profits in the year of purchase, with no cap.
At a glance
| Relief | 100% first-year |
|---|---|
| Who | Companies only |
| Assets | New main-rate plant and machinery |
How it saves tax
A £50,000 purchase can cut Corporation Tax by up to £12,500 at 25%.
Exclusions
Second-hand assets, most cars and some leased items are excluded.
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The bottom line
Full expensing lets companies deduct 100% of the cost of qualifying new main-rate plant and machinery from profits in the year of purchase, with no cap. If you would rather not do it alone, our fixed fees start at £45.83 + VAT a month.
Frequently asked questions
Can sole traders claim full expensing?
No, only companies.
What about second-hand equipment?
The Annual Investment Allowance may apply instead.
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