Full Expensing

How full expensing works

The business must establish that it and the expenditure qualify. Main-rate assets, special-rate assets, cars, leasing activity and disposal rules need separate consideration. The treatment of a financed acquisition depends on the actual arrangement.

Practical UK business example

A limited company plans new production equipment. Its accountant checks eligibility for full expensing and compares it with other available allowances rather than treating the supplier’s description as tax advice.

Illustrative example only; not a finance quotation or a client case study.

Why it matters

It can accelerate relief for eligible investment and influence after-tax cash planning.

Limitations and common misconceptions

It is not available to every business or asset and does not mean the government reimburses the whole purchase price. Do not assume sole traders, used assets or every leasing transaction qualify.

Explore asset finance to discuss how the structure relates to your business.