The Chancellor announced the following measures on Capital Allowances in his 2023 Autumn Statement.

Full Expensing

The Chancellor has announced that the Autumn Finance Bill will legislate to remove the end date for full expensing. This will make the capital allowance permanent instead of ending on 31 March 2026 as originally intended.

Full expensing allows companies incurring qualifying expenditure on the provision of new plant and machinery to claim:

  • A 100% First Year Allowance (FYA) for main rate expenditure.
  • A 50% FYA for special rate expenditure.

The government will publish a technical consultation on draft legislation in due course to help it consider any potential extension to include plant and machinery for leasing, which is subject to future decisions.

See Full expensing & First Year Allowances

Capital allowances: technical consultation 

From January 2024, HMRC will launch a consultation looking at wider changes that can be made to capital allowances as a whole. The aim will be to publish draft legislation by Summer 2024.

  • The consultation will seek views from stakeholders as to how to simplify or reduce the existing legislation for plant & machinery.
  • It is not intended to review the Structures & Buildings Allowance or Research & Development Allowances.
  • The consultation will not review the scope of expenditure covered by any of the current capital allowances.

Further information can be obtained from This email address is being protected from spambots. You need JavaScript enabled to view it..

See Plant & machinery: Allowances

Useful links

Autumn Statement 2023: At a glance
The Chancellor, Jeremy Hunt, presented his Autumn Statement 2023 speech on Wednesday 22 November. This is our 'At a glance' summary of the key tax announcements and measures. 

External links

Guidance: Full Expensing

Policy paper: Permanent full expensing for companies investing in plant and machinery

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