UK FACT CHECK POLITICS
UK FACT CHECK POLITICS
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From: Budget 2026 live: Latest updates, analysis and fact checks

Budget raises first year allowance to 50% and cuts writing-down allowance to 12%

The Budget raises the main rate First Year Allowance for business investment from 40% to 50%, according to a winners and losers analysis carried by AOL.

The same analysis reports that the main writing-down allowance is cut by 2 points to 12% to help cover the lost revenue.

The Institute for Government says the capital allowances change is the only tax measure in the Budget worth more than £1bn in the final forecast year.

AOL also reports more than 250 tariff suspensions in the Chancellor John Healey's package, including on fertiliser and kerosene heating oil.

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