How does HMRC Full Expensing work for commercial asset purchases?

Under HMRC Full Expensing rules, UK limited companies paying the 25% main rate of Corporation Tax can claim 100% first-year capital allowances on qualifying new plant and machinery. For every £100,000 spent, your corporation tax bill is reduced by £25,000.

What is the difference between Hire Purchase (HP) and Finance Lease?

With Hire Purchase, your business owns the asset at the end of the term after a nominal option-to-purchase fee and claims capital allowances immediately. With a Finance Lease, the funder retains ownership, and you deduct monthly rental payments as allowable business expenses.

Can I finance used or second-hand commercial machinery?

Yes. Commercial lenders routinely finance second-hand plant, HGVs, yellow plant, and CNC equipment up to 10–12 years of age at competitive commercial rates.

HMRC Full Expensing 25% ReliefCommercial Rates 2026/27

UK Business Asset Finance & Tax Calculator

Calculate commercial hire purchase repayments, finance lease structures, and immediate 25% HMRC Corporation Tax super-deduction write-offs.

📊

Asset & Funding Requirements

Asset Classification

Total Asset Purchase Value£75,000

£10,000£250,000£500,000

Repayment Term

Commercial Cashflow ModelHMRC 2026 Ready

Estimated Monthly Repayment

£2,508 / mo

Fixed payments with zero balloon penalty

HMRC Tax Write-Off

-£18,750

Net Effective Cost

£71,550

🏛️ Statutory Full Expensing:100% First-Year Capital Allowance

Next Step: Connect With Principal UK Lenders & Brokers

Ready to secure competitive terms for this £75,000 asset?

Receive term sheets from FCA-regulated asset lenders in your commercial territory. Zero brokerage markup.

🛡️ 100% Direct Engineer Allocation·Zero directory cold-call spam·Area: Your Postal District

Tax Relief Matrix

2026 Capital Allowance & Full Expensing Impact

Estimated Corporation Tax relief at the 25% statutory rate across typical commercial asset purchase values.

Asset Value	Asset Class	Typical 36-Mo Repayment	HMRC 25% Tax Write-Off	Net Effective Cost
£35,000	Commercial Van / Light Fleet	£1,165 / mo	-£8,750	£33,190
£75,000	Heavy Machinery / Yellow Plant	£2,500 / mo	-£18,750	£71,250
£150,000	Industrial CNC / Production Line	£5,000 / mo	-£37,500	£142,500

Finance Structure

Hire Purchase vs. Finance Lease: Which Structure Fits Your Balance Sheet?

Hire Purchase (HP)

Best for long-life machinery and vehicles you want to own permanently. You claim 100% capital allowances upfront and pay VAT at the start.

Finance Lease

Best for preserving cash flow. VAT is spread across monthly rentals rather than paid in a lump sum, and rental payments are 100% tax deductible.

Commercial FAQ

Frequently Asked Business Asset Finance Questions

Can new start-up businesses obtain commercial asset finance?

Yes. While established businesses with 2+ years of filed accounts access the lowest rates, specialist funders provide asset-backed finance to new limited companies with personal director guarantees or modest 10–20% deposits.

What documentation is required to approve commercial asset finance?

Most lenders require: (1) Last 3 months business bank statements, (2) Most recent filed statutory accounts, and (3) The supplier pro-forma invoice or asset quotation.

Speak With a Principal Commercial Asset Funder

Secure same-day credit approvals from principal UK lenders. Zero upfront broker fees.

← Browse All Financial Tools Calculate My Asset Repayments ↑