What is full expensing and can my business use it?

Full expensing is available to companies subject to Corporation Tax for qualifying expenditure incurred from 1 April 2023. It gives an immediate deduction for the full cost of eligible main-rate plant and machinery. The equipment must be new and unused. Cars, gifts and most equipment bought to lease to someone else are excluded, although background plant within a leased building can be treated differently. Sole traders and partnerships cannot claim full expensing. Companies may be able to use AIA instead where both are available. Selling an asset after claiming full expensing can create a tax charge. CASS can assess eligibility and the consequences before you choose.