12/01/2026
Many businesses still have time to claim 100% first-year tax relief on qualifying plant and machinery, including new air compressors 💡
Under the UK Government’s Full Expensing scheme, limited companies can deduct the full cost of eligible new equipment from their taxable profits in the year of purchase.
This applies to qualifying investments made between April 2023 and 31 March 2026.
In practical terms, that means:
- 100% first-year capital allowance on new, unused main-rate plant and machinery
- Available to companies paying Corporation Tax
- A potential tax saving of up to 25p for every £1 invested
For example, a £10m qualifying investment could deliver a £2.5m tax saving in year one.
Unincorporated businesses may still benefit through the Annual Investment Allowance (AIA), and limited companies can also use AIA for used equipment, subject to limits.
This is just a general example. Always speak to your accountant or tax adviser to confirm eligibility.
If you’re planning to invest in new compressed air equipment and want to understand how Full Expensing may apply, we’re happy to talk it through.
