If you run a logistics firm in Gatwick, a manufacturing unit in Manor Royal, or a construction business in Horsham, you likely have a shopping list of assets you need for the year ahead.

Maybe it’s a new forklift, a replacement van, or a server upgrade.

As we sit here in February 2026, you might be thinking: "I'll wait until the new financial year starts in April to sort that out."

Pause for a moment.

Waiting until April could impact your cash flow significantly. Due to the way Corporation Tax relief works—and with possible changes to allowances expected in future years—timing your purchase correctly is critical.

Buying an asset on 31st March versus 1st April could make a difference of 12 months to when you receive your tax relief.

Here is why smart Crawley business owners are reviewing their procurement plans now.

1. The One Day Difference (Cash Flow)

This is the simplest but most powerful reason to review your timing.

Capital Allowances (tax relief on business assets) are generally applied to the Accounting Period in which you incur the expenditure.

For the purpose of this example, we will assume your company year-end is 31st March (a common date for many SMEs), though your actual dates may differ.

• Scenario A: You buy a £50,000 machine on 30th March 2026.
  
  • The cost falls into this financial year.
  • It reduces this year's taxable profit.
  • You pay less Corporation Tax in your bill due 1st January 2027.
• Scenario B: You wait and buy it on 1st April 2026.
  
  • The cost falls into next financial year.
  • You don't see the benefit of the tax relief until your bill due 1st January 2028.

The Result: By waiting 48 hours, you delay your tax relief by a full year. In an economy where cash is king, accessing that relief sooner is often the smarter move.

2. Utilise Full Expensing While Available

Currently, the Full Expensing regime allows limited companies to claim 100% Corporation Tax relief on most qualifying new main-rate plant and machinery in the year of purchase.

However, tax rules are political and subject to change.

With the government constantly reviewing public finances, relying on reliefs remaining identical in future tax years is a risk.

The Curve Strategy: If you have the cash and you need the asset, consider buying it while the current 100% relief is available under the existing rules. Don't gamble on the landscape remaining unchanged in the 2026/27 tax year.

3. The Electric Van Incentive

For our clients in the trades—plumbers, couriers, and builders across West Sussex—vans are often the biggest capital expense.

Under current rules, many fully electric vans qualify for 100% First Year Allowances, subject to specific conditions.

• Illustration: If you buy a qualifying £40,000 electric van before year-end, you could deduct the full £40,000 from your taxable profit immediately.
• Potential Saving: For a company paying the main rate of Corporation Tax (25%), that could mean a reduction of £10,000 on your upcoming tax bill. (Note: Your effective tax rate may vary depending on profit levels and associated companies).

(Crucial Note: Rules regarding Double Cab Pickups have been complex recently. If you are eyeing a Ranger or a Hilux, speak to us first—don't assume it qualifies as a van!)

4. Don't Forget Embedded Allowances (Manor Royal Special)

This is where we can add significant value for industrial clients.

If you own your commercial property—perhaps a unit in Manor Royal or an office in Crawley town centre—you may, in some cases, be sitting on unclaimed allowances.

"Embedded Capital Allowances" refer to fixtures inside the building that are considered plant and machinery. This can include:

• Air conditioning and heating systems
• Security systems and alarms
• Lighting and electrical cabling
• Kitchens and toilets

If you are planning a fit-out or renovation, doing it before your year-end ensures you capture that relief in the current period. Depending on the building's history and value, we have seen clients claim significant tax refunds by identifying these "hidden" assets correctly.

Critical Check

A word of warning. You can't just say you bought it.

For Capital Allowances, the date of expenditure is technically complex, but in many straightforward cases, it is the date the obligation to pay becomes unconditional.

This is often close to the invoice or delivery date, but be careful:

• Contracts: Simply ordering the machine on 30th March may not be enough if the contract conditions aren't met until May.
• Financing: If you use Hire Purchase or Finance Leases, the tax point rules can differ.

The Fix: If you are cutting it fine near the year-end, take professional advice to ensure the expenditure genuinely falls into the correct tax year.

Your February Action Plan

You have a narrow window to review your asset needs.

1. Review your wish list: What were you planning to buy in Q2 2026? Does it make commercial sense to bring it forward to Q1?
2. Check your AIA: The Annual Investment Allowance is currently set at £1 million (at the time of writing), covering most SME spend. Ensure you are utilising it effectively.
3. Speak to Curve: Before you sign the lease or pay the deposit, let us check the tax treatment. Not all assets qualify for the same relief (e.g., cars are treated very differently to vans).

Make your capital work harder for you.

Book your free consultation with Curve.