Finances

Capital allowances – fact sheet

Is your business taking full advantage of the changes to capital allowances announced in the Spring Budget 2023?

08 Feb 2022 . 2 min read

Article updated 4th April 2023

Download our fact sheet at the bottom of this page to see how the full expensing tax incentive means companies can claim a 100% first year allowance for expenditure on main pool qualifying assets, such as machinery, furniture and computers, until 31 March 2026.

Capital allowance incentives

A 50% first year allowance is also available for expenditure incurred up to 31 March 2026 on assets including integral features in buildings, such as electrical, water and heating systems.

The fact sheet also covers:

Annual Investment Allowance: This permits 100% relief for up to £1m of expenditure incurred each year on eligible assets. This relief is available to a wide range of businesses.
Freeports and Investment zones: These offer a range of tax incentives including enhanced capital allowances. Freeports are usually trade and transport hubs situated near maritime ports or airports. Examples include Plymouth and East Midlands Airport. Investment Zones have been proposed in a number of areas around the UK, including Liverpool and Greater Manchester.

Download the factsheet

Capital allowances factsheet (PDF, 369KB)

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This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of the NatWest Group Economics Department, as of this date and are subject to change without notice.