HMRC Capital Allowances 2026£1M AIA Limit100% Full Expensing
Capital Allowances AIA & Full Expensing Calculator
Calculate HMRC Capital Allowances tax relief on business assets — Annual Investment Allowance (£1m 100% relief), Main Pool WDA (18%), and Full Expensing.
Capital Allowance Tax Saving Estimator
Compute first-year Corporation Tax saving on business asset purchases
£
Capital Allowance Result:
Asset Cost
£100,000
Purchase PriceYear 1 Relief
£18,000
Main Pool WDA (18%)CT Tax Saving
£4,500
Year 1 CT SavedCapital Allowances Scheme Comparison (2025/2026)
| Scheme | Relief Rate | Monetary Cap | Who Can Claim |
|---|---|---|---|
| Annual Investment Allowance (AIA) | 100% Year 1 | £1,000,000 / year | All businesses |
| Full Expensing (FE) | 100% Year 1 | No cap (NEW assets only) | Companies only |
| Main Pool WDA | 18% / year | No cap | All businesses |
| Special Rate Pool WDA | 6% / year | No cap | All businesses |
Frequently Asked Questions (FAQs)
The Annual Investment Allowance (AIA) allows businesses to deduct 100% of qualifying capital expenditure on plant and machinery up to £1,000,000 per tax year.
The Main Pool Writing Down Allowance is 18% per year on the reducing balance of qualifying plant and machinery expenditure that exceeds the AIA limit.
Special Rate Pool assets include integral building features (lifts, heating, air conditioning), thermal insulation, solar panels, and long-life assets with useful economic lives over 25 years.
Full Expensing allows incorporated companies (not sole traders) to deduct 100% of NEW qualifying main pool plant and machinery costs in the year of purchase, with no monetary cap.
Yes. Sole traders and partnerships can claim the AIA (up to £1,000,000) on qualifying plant and machinery. However, Full Expensing is only available to incorporated companies.