Machinery purchases & tax relief
Capital allowances may help eligible UK businesses reduce taxable profits when investing in qualifying machinery.
Full expensing
Eligible companies may deduct 100% of qualifying expenditure on new and unused main-rate plant and machinery from taxable profits in the year of purchase. Eligibility and exclusions apply; a purchase does not automatically qualify.
Annual Investment Allowance
AIA can provide a deduction for qualifying plant and machinery within an allowance of £1 million for a 12-month accounting period. Available allowance can depend on other expenditure, connected businesses and the accounting period.
An illustration
If a £30,000 machine qualifies for a full deduction, and that deduction reduces profits taxed at 25%, the tax reduction would be £7,500. This is an illustration, not a guaranteed saving or a discount from Carter’s invoice. VAT, finance interest and delivery are excluded from this example.
Before you order
Ask your accountant to confirm eligibility, the correct allowance, available relief and timing for your business. Hire purchase and leasing can have different treatment. Selling a machine later may also affect your tax position.
General information checked 4 October 2026. Rules and circumstances can change. Your accountant should confirm the treatment of a proposed purchase.
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