UK Government Full Expensing (FE) Tax Scheme

1. How Does Full Expensing Work?

Full expensing is a 100% first-year allowance letting companies claim a deduction from taxable profits equal to the full cost of qualifying capital machinery investments in the year the expenditure is incurred.

This means instead of spreading the tax deduction over several years, your business receives the full tax benefit immediately.

2. What Material Handling Equipment Qualifies?

Almost all warehouse and industrial equipment sold on our site qualifies under the scheme, including:

• Warehousing Equipment: Forklift trucks, stackers, reach trucks, and hand pallet trucks.
• Storage Systems: Industrial racking, shelving, and heavy-duty lockers.
• Tools & Machineries: Powered stackers, lift tables, and workshop equipment.
• Other Assets: Vans, tractors, and computers/printers (passenger cars are excluded).

3. Who is Eligible to Claim?

• Full Expensing (100% first-year write-off) is available to all companies subject to UK Corporation Tax.
• Unincorporated Businesses (Sole Traders & Partnerships) cannot claim full expensing, but they are fully entitled to claim the Annual Investment Allowance (AIA), which offers the exact same benefit (100% write-off in year one) for investments up to £1 million per year.

4. Examples of Tax Savings