Policy paper

Reduce the main rate writing-down allowance and increase the main rate first-year allowance

This tax information and impact note covers the reduction of the main rate of writing-down allowances and the increase to the main rate first-year allowance.

• From: HM Revenue & Customs
• Published: 29 October 2026

Documents

Capital allowances: reduce the main rate writing-down allowance and increase the main rate first-year allowance

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Details

This measure reduces the main rate of writing-down allowances to 12% from:

• 1 April 2027 for Corporation Tax
• 6 April 2027 for Income Tax

It also increases the rate of the main rate first-year allowance from 40% to 50% for expenditure incurred on or after 1 January 2027.