40% first-year allowance (plant and machinery bought from 1 January 2026)
HM Revenue and Customs
Worth
No set amount
Tax relief
Deadline
Rolling - no fixed deadline
Type of funding
Tax relief
Where
UK-wide
What it is
A tax relief, not a grant: you can deduct 40% of the cost of new main-rate plant and machinery (not cars) bought on or after 1 January 2026 from profits in the first year, then claim writing-down allowances on the rest.
Checked 9 Nov 2026 on GOV.UK: new, unused main-rate plant and machinery (not cars) bought from 1 January 2026 can get a 40% first-year deduction, with writing-down allowances on the other 60% later. Most small businesses will get more from the Annual Investment Allowance first.
Official sourceWho can apply
A summary of the main rules, not the full list. HM Revenue and Customs decides who is eligible, so read their guidance before you apply. The free scan checks these against your own business.
- You're buying equipment, machinery, vans or other plant (not cars, land or buildings)
Common questions
- Is 40% first-year allowance (plant and machinery bought from 1 January 2026) open for applications?
- Yes. It is open for applications, with no fixed deadline.
- How much is 40% first-year allowance (plant and machinery bought from 1 January 2026) worth?
- There is no single published figure: what you get depends on your project and the funder's assessment. It is a tax relief.
- Who runs 40% first-year allowance (plant and machinery bought from 1 January 2026), and where is it available?
- HM Revenue and Customs runs it. It is available across the UK.
Does your business qualify?
Eligibility rules are where schemes get fiddly. Gov Owed checks your business against 40% first-year allowance (plant and machinery bought from 1 January 2026) — and every other UK scheme we track — in about two minutes, free. The £19.95 report then explains exactly why you qualify, drafts your answers and walks you through the real application step by step.
Check my businessNo sign-up to scan · keep 100% of anything you win · re-runs free for 12 months
Related schemes
Made Smarter Adoption
Made Smarter (DBT-backed)
Property Development Grant (PDG) — Wales
Welsh Government
Business Energy Scotland SME Loan + Cashback
Business Energy Scotland (Energy Saving Trust, Scottish Government funded)
DRIVE35 Scale-up Fund
Innovate UK / Advanced Propulsion Centre / Department for Business, Innovation, Science and Trade
Information, not financial advice; eligibility is decided by the funder. Contains public sector information licensed under the Open Government Licence v3.0. Schemes change — confirm details on the official page before applying.