A range of measures featured in this area including the announcement that the 100 percent first year allowance (FYA) for qualifying expenditure on certain green assets, including plant or machinery for electric vehicle charge points, will be extended, a recommendation of the Institute in its pre-budget submission.
Green FYA
The Government will extend for a further year the 100 percent FYA for qualifying expenditure on zero-emission cars and the 100 percent FYA for qualifying expenditure on plant or machinery for electric vehicle charge points to 31 March 2026 for corporation tax and 5 April 2026 for income tax.
Leased assets and full expensing
Extending full expensing to assets bought for leasing or hiring will be explored when fiscal conditions allow.
What qualifies for capital allowances
HMRC will continue to work with stakeholders to improve and clarify guidance on areas of uncertainty within the capital allowances system.
Tax treatment of predevelopment costs
A consultation will be launched in the coming months that explores the tax treatment of predevelopment costs.
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