Full Expensing Calculator
Full Expensing lets UK companies deduct 100% of the cost of new main-pool plant and machinery from taxable profits – with no annual cap. It's the most generous capital allowance available to incorporated businesses.
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Many business owners confuse Full Expensing with the Annual Investment Allowance. While both give 100% upfront relief on main-pool assets, Full Expensing has no £1m limit – making it far more valuable for companies with large capital programmes. However, it only applies to new assets, not second-hand purchases.
A common oversight is forgetting that special rate assets – such as integral features of buildings, long-life assets, and thermal insulation – only receive a 50% First-Year Allowance, not the full 100%. The remaining half enters the special rate pool at just 6% per year, so the timing of these purchases matters less than main-pool items.
Enter your planned capital expenditure below to see how Full Expensing and the 50% FYA reduce your Corporation Tax bill. If you're buying second-hand equipment, try our AIA Calculator instead.
Full Expensing Calculator
Plant, machinery, equipment, vans, tools
Integral features, long-life assets, thermal insulation
Year 1 Capital Allowance Relief
Main Pool Relief
£100,000
100% Full Expensing
Special Rate Relief
£0
50% First-Year Allowance
Total Year 1 Deduction
£100,000
Taxable Profit After Relief
£200,000
Corporation Tax
£49,250
Effective rate: 16.4%
Tax Saving from Relief
£25,750
Tax Without Capital Allowances
£75,000
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