VerbatimParliament, as it happens

Assets: Small Businesses

Asked by Mr Richard HoldenConservativeTreasuryTabled Answered 21 November 2025UIN 90817

The question

To ask the Chancellor of the Exchequer, whether she plans to extend full expensing to leased assets to support small and medium-sized transport businesses that lease vehicles.

Answered by Dan Tomlinson

The UK has one of the most generous and competitive capital allowances regimes in the world and is top of the rankings of OECD countries for plant and machinery capital allowances.

The Annual Investment Allowance allows both incorporated and unincorporated businesses to deduct the entire cost of investment in both main and special rate assets in one go, up to £1 million per year, including assets bought for leasing or hiring.

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