Written Question·Treasury·UIN 103504

Manufacturing Industries: Tax Allowances

Tabled: 6 January 2026

Answered: 14 January 2026

Question

Mr 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

Dan Tomlinson

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...

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