A new 40% first-year tax allowance has been introduced enabling businesses to reduce the cost of investing in new plant and machinery.

The relief applies to a wide range of operational assets, from IT equipment and office furniture to air-conditioning systems, and allows firms to deduct a significant portion of the spend from their tax bill in the year of purchase.

It extends support to leased assets and unincorporated businesses, which do not qualify for full expensing.