Corporation Tax: Tax Allowances
Commons · Question 103503 · Tabled 6 Jan 2026 · Treasury · Official record
Answered 14 Jan 2026
Question
Asked by Andrew Snowden
To ask the Chancellor of the Exchequer, what metrics her Department will use to evaluate the success of the new first-year allowance in stimulating growth and productivity.
Answer
Answered by Dan Tomlinson, 14 Jan 2026
The government has introduced a new 40% first-year allowance (FYA) from 1 January 2026. This is a permanent new feature of the capital allowance regime. This new FYA will allow businesses to deduct much of the cost of their investment in the year they mak...