User Roles AdminStaff contributor ✗External contributor ✗Pulse user 

Use the 100% FYA full expensing template for the full expensing first-year allowance on qualifying new main-pool plant and machinery. Full expensing gives a 100% first-year allowance on qualifying expenditure incurred on or after 1 April 2023 and is now a permanent allowance. The template calculates the allowance on qualifying additions and the balancing charge that arises on disposal.

Table of contents 

When should I use this template?

Use it where the company has incurred qualifying expenditure on new main-pool plant and machinery on or after 1 April 2023 and wishes to claim full expensing, or where it is disposing of an asset on which full expensing was claimed.

Before you start

A business type must be selected in the Business type section of the Return information template. If none is selected, the template shows a warning and cannot calculate.

Qualifying additions are pulled in from the Total fixed asset additions template, so mark the relevant additions with the 100% FYA / full expensing tax treatment there first.

Background: how full expensing works

Full expensing gives a 100% first-year allowance on qualifying new main-pool plant and machinery, so the whole cost is relieved in the period of expenditure. (A separate 50% first-year allowance applies to new special-rate expenditure.) Because 100% of the cost has been relieved, a disposal of a full expensing asset gives rise to an immediate balancing charge, broadly equal to the disposal proceeds.

Full expensing applies to expenditure from 1 April 2023 and, following its confirmation as a permanent measure, has no current end date.

Step 1: Confirm qualifying additions

Additions marked with the 100% FYA / full expensing tax treatment in Total fixed asset additions appear here. Review the qualifying expenditure and the 100% allowance calculated on it.

Step 2: Deal with disposals

Where a full expensing asset is disposed of, the template calculates the balancing charge (broadly the disposal proceeds), which is added back in the computation. The disposal proceeds are taken from the disposals analysis.

What flows through to the rest of Corporation Tax?

The 100% allowance reduces taxable profit in the period of expenditure, and any balancing charge on disposal increases taxable profit. Both feed the capital allowances in the tax computation, with the appropriate iXBRL tags.

Frequently asked questions

What qualifies for full expensing?

New and unused main-pool (general rate) plant and machinery. New special-rate expenditure qualifies for the separate 50% first-year allowance instead.

Is full expensing time-limited?

No. It applies to expenditure from 1 April 2023 and has been made permanent.

Why is there a balancing charge on disposal?

Because 100% of the cost was relieved up front, disposing of the asset gives rise to a balancing charge, broadly equal to the disposal proceeds.