Capital allowances rates for 2026

Allowances and when they apply

Allowance	Rate	Applies
Annual investment allowance	£1 million a year	Since 1 January 2019; not on cars
Full expensing	100% main rate, 50% special rate	Companies only, new and unused plant from 1 April 2023
First-year allowance	40%	New main rate plant bought on or after 1 January 2026; not cars
Main pool	14%, previously 18%	From 1 April 2026 for companies and 6 April 2026 for income tax
Special rate pool	6%	Integral features, long-life items, solar panels, added thermal insulation, cars over 50g/km
Zero-emission cars	100% first-year allowance	New and unused, to 31 March 2027 for companies and 5 April 2027 for income tax
Structures and buildings	3% a year	From 1 April 2020 for companies and 6 April 2020 for income tax

Questions

What rate applies to a period that spans 1 April 2026?

A hybrid rate, worked out from the days before and after the change. GOV.UK says it must be worked out for any accounting period that includes the day the rate changed.

Who can claim the 40% first-year allowance?

The policy paper says it is open to unincorporated businesses as well as companies, and to most leasing, apart from overseas leasing.

How does Accountin handle the change?

The CT600 uses 18% before 1 April 2026 and 14% after, with a blended rate for a period that spans the date. See capital allowances in the CT600.

Related guides

Corporation tax rates and marginal relief for 2026 to 2027Corporation tax for the year from 1 April 2026: 19% small profits rate, 25% main rate, marginal relief between £50,000 and £250,000, and associated companies.HMRC's accounts and Company Tax Return service has closedThe joint HMRC and Companies House service for filing company accounts and the CT600 closed on 31 March 2026. What companies and agents use now.CT600 supplementary pages and when each one is neededThe CT600 supplementary pages from CT600A to CT600P: what each is for, which companies need it, and how the pages fit into the Company Tax Return.Associated companies and the corporation tax limitsHow associated companies are counted from 1 April 2023, the control test, which companies are ignored, and how the £50,000 and £250,000 limits divide.