The delivery of the Spring Budget 2024 saw a number of key budget measures being announced that are relevant for the construction industry. One of these was the announcement that the government intends to extend full expensing to assets for leasing “when fiscal conditions allow”. 

Full expensing was introduced as a temporary relief in March 2023 and confirmed on a permanent basis in Autumn 2023. The relief allows businesses to offset investment in plant and machinery against tax, letting UK companies write off 100% of the cost of new machinery and equipment from their taxable profits in the year they invest. The announcement that full expensing could be extended to leased assets could allow contractors to offset the cost of hired plant and machinery. The timing of the measure has not yet been announced, with the government stating that draft legislation on this matter will be published shortly, but the announcement of draft legislation is a positive sign for the construction industry.