Full expensing covers the kit, R&D relief covers the work.

Full expensing is a 100% first-year allowance for companies on qualifying expenditure on main rate plant or machinery. HMRC's Capital Allowances Manual says it was introduced by the Finance (No. 2) Act 2023. A company can deduct the whole cost from its profits in the year of purchase, rather than spreading it through writing down allowances. It applies to companies within the charge to Corporation Tax.

Special rate plant or machinery does not qualify for full expensing, but it can qualify for a 50% first-year allowance, according to HMRC's manual. Both allowances share the same basic conditions, including that the spending is by a company and on unused plant. We leave the asset classification to your accountant, but we ask which category each purchase fell into.

HMRC's manual sets four conditions. The expenditure must be incurred on or after 1 April 2023, by a company within the charge to Corporation Tax. The plant or machinery must be unused and not second-hand. The spending must also fall outside the general exclusions in section 46 of the Capital Allowances Act 2001. These conditions apply to both full expensing and the 50% allowance.

No. The conditions in section 45S of the Capital Allowances Act 2001 require expenditure to be incurred by a company within the charge to Corporation Tax. Sole traders and partnerships of individuals are therefore outside full expensing as it is drafted. They may have access to other allowances, such as the annual investment allowance, so their adviser should consider those.

The legislation in section 45S of the Capital Allowances Act 2001 contains a start date of 1 April 2023 but no end date. The HMRC guidance pages we read do not state the permanence position in their own words, so we recommend confirming current status with your accountant before relying on it for a large purchase.

No. HMRC's manual says that expenditure on cars is excluded from both full expensing and the 50% first-year allowance, even though some cars appear on the special rate list. Classification is a matter for your accountant. We simply ask for a list of vehicles purchased so the R&D claim records are consistent.

Not under these allowances. HMRC's conditions require the plant or machinery to be unused and not second-hand. If you bought used test equipment or a refurbished machine for a project, it will not qualify for a first-year allowance, though other capital allowances may be available. Tell your accountant how each item was bought so the right treatment is applied.

HMRC's capital allowances overview says you can claim up to 1 million pounds on certain plant and machinery under the annual investment allowance. It sits alongside full expensing and the first-year allowances as a separate relief. Which one applies to a given purchase depends on who bought it and what it was. Your accountant decides the best order of claims.

Yes. HMRC's capital allowances overview says you can claim a 40% first-year allowance on qualifying plant and machinery purchased after 1 January 2026. The page gives little detail, and we have not verified its conditions, so we do not describe how it works. Ask your accountant whether it applies to anything you bought since that date.

HMRC's R&D costs guidance lists capital expenditure as not claimable under R&D tax relief, so equipment is generally dealt with through capital allowances such as full expensing or research and development allowances. Consumables and some other costs differ. We help you separate the two so each purchase is relieved once and the R&D claim stays clean.