Manufacturing Industries: Tax Allowances
Commons · Question 103504 · Tabled 6 Jan 2026 · Treasury · Official record
Answered 14 Jan 2026
Question
Asked by Andrew Snowden
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the new 40% first year allowance for for main-rate plant and machinery on the level of regional investment and economic growth.
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...