Retail investment boosted as 40% first-year tax allowance takes effect

Retailers investing in stores, logistics and equipment will be able to cut their tax bills as the new 40% first-year allowance for plant and machinery comes into force.
The permanent relief, effective from yesterday (1 January), allows businesses to deduct 40% of the cost of qualifying main-rate assets and machinery investments, such as warehouses or construction equipment, in the year of purchase.
It was first announced by chancellor Rachel Reeves during the Budget in 2025 as part of a bro