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    KnowTheCost.co.uk
    Content reviewed · 2026/27 tax year

    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

    Frequently Asked Questions

    What's Next?

    AIA Calculator

    Claim up to £1m on new and second-hand assets

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    Corporation Tax Calculator

    Calculate your CT bill before and after allowances

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    R&D Tax Credits Calculator

    Claim additional relief for innovation spending

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