What Is Full Expensing for Dental Practices?
Full Expensing is a UK capital allowance introduced on 1 April 2023, replacing the Super Deduction.
It allows companies (including dental practices operating as limited companies) to claim 100% tax relief on qualifying plant and machinery investments in the year of purchase — with no upper limit.
Why Does Full Expensing Matter for Dental Practice Owners?
Dental practices often make large capital investments — from CBCT scanners to surgery refits. Full Expensing ensures those investments immediately reduce taxable profit, improving cash flow and protecting profitability.
- ✅ 100% upfront relief, no waiting for writing down allowances
- ✅ Unlimited qualifying spend (AIA cap no longer restrictive)
- ⚠️ Only applies to companies (not sole traders or partnerships)
Example:
- Digital scanner purchased for £40,000 in 2024
- Full Expensing claim = £40,000 deduction from taxable profits
- At 25% Corporation Tax → £10,000 tax saving
What Assets Qualify for Full Expensing?
| Qualifying Assets | Examples for Dental Practices |
| Plant & Machinery | Dental chairs, delivery units, compressors |
| Technology | Digital imaging, CBCT scanners, IT servers |
| Surgery Fixtures | Cabinetry, lighting, refits |
Cars and buildings do not qualify. Special rate assets (e.g. integral features like heating or electrical systems) may get a 50% first-year allowance instead.
How Does Full Expensing Compare to Other Allowances?
| Relief | Rate | Limit | Status |
| Super Deduction | 130% | No cap | Ended 31 Mar 2023 |
| Annual Investment Allowance (AIA) | 100% | £1m/year | Still available |
| Full Expensing | 100% | Unlimited | Active from Apr 2023 |
| Writing Down Allowances (WDA) | 18%/6% | No limit | For non-AIA/FE assets |
How Does DentPulse Track Full Expensing Automatically?
| Feature | Function |
| Capital Allowance Engine | Identifies assets eligible for Full Expensing vs AIA |
| Live Tax Planning | Applies deductions instantly to Corporation Tax forecasts |
| Scenario Planning | Models timing of asset purchases for maximum relief |
| Profit-to-Pocket™ Overlay | Shows how tax savings flow into safe take-home (PPAT™) |
DentPulse ensures Full Expensing is not just claimed — but strategically timed for maximum cash and tax efficiency.
DentPulse Tip™
“Full Expensing rewards practices that invest wisely.
But timing matters — DentPulse shows exactly when a purchase saves you the most.”
Related Glossary Terms
- Annual Investment Allowance (AIA) – still available, but capped at £1m
- Super Deduction – expired 130% relief (2021–2023)
- Writing Down Allowances (WDA) – fallback for non-qualifying assets
- Capital Allowances – umbrella category for UK tax reliefs
- Corporation Tax – reduced by full expensing claims
Glossary Summary Table
| Term | Meaning |
| Full Expensing | 100% tax relief on qualifying assets in year of purchase |
| Limit | Unlimited spend (companies only) |
| DentPulse Advantage | Tracks eligibility, times purchases, links relief to take-home income |
