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Changes to capital allowances
Summary by Whitley Stimpson
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Changes to capital allowances
The writing-down allowance (WDA) for capital assets will be lowered from April 2026 and a new first year allowance is introduced. Currently, companies can claim full expensing to deduct 100% of the cost of new and unused qualifying assets from their taxable profits. The annual investment allowance (AIA) also provides 100% tax relief on up to £1m per year of qualifying expenditure for companies and unincorporated businesses. Certain assets do not…
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