In his Autumn Statement, the chancellor has sensibly announced the temporary tax break of full expensing on investment in plant and machinery will be made permanent. This policy means companies can get all the tax back on an industrial investment, reducing their bill by up to £250,000 for every £1 million spent. Previously this was due to end in April 2026, so giving businesses a degree of certainty in planning their investment going forward is certainly to be welcomed.
Obviously full expensing (albeit temporary) has been around for a while now, so Plus Finance already has plenty of experience working with our customers to find the most tax efficient way of funding their office fit-outs and refurbishments.
The important thing to remember is not all of a fit-out project will qualify for the full expensing tax break – only capital allowable items will qualify, leaving a significant percentage of a project getting no tax break whatsoever.
Over the last 22 years, as the UK’s leading specialist in the market, Plus Finance has worked with our funding partners to develop a fully tax allowable finance product, meaning 100% of a fit-out can be offset against taxable profits. Full expensing for qualifying expenditure can still be taken advantage of (via Hire Purchase), but Plus Finance can also provide a solution to fund the remainder of the project. In most cases, this can work out cheaper than paying cash or using a bank loan.