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Policy Paper Published 26 Nov 2025 HM Revenue & Customs ↗ View on GOV.UK

New first-year allowance and main rate of writing-down allowances

This tax information and impact note details the new first year allowance and reduction of the main rate of writing down allowances.

▤ Verbatim text from source document

This measure introduces a new 40% first year allowance for expenditure incurred on or after 1 January 2026. It reduces the main rate of writing down allowances to 14% from:

  • 1 April 2026 for Corporation Tax
  • 6 April 2026 for Income Tax