The short answer
Qualifying lighting expenditure can often be claimed under the Annual Investment Allowance, which gives 100% relief up to £1 million a year. Lighting in a building is usually an integral feature, which falls in the special-rate pool, so full expensing does not usually apply, though companies may claim a 50% first-year allowance on new special-rate plant. This is general information, not tax advice.
The main routes
| Relief | What it means for lighting |
|---|---|
| Annual Investment Allowance | 100% deduction for qualifying spend within the £1 million allowance |
| Integral features | Lighting in a building is usually treated as special-rate expenditure |
| 50% first-year allowance | Companies may claim this on new, unused special-rate plant |
Relief reduces taxable profit; it is not a cash grant. Eligibility depends on the expenditure and the claimant.
What to keep
- Our invoice and fitting schedule.
- Certificates for the installation.
- Any split between fittings, controls and building work.
Speak to your accountant before committing if tax relief is part of the business case.
Public sector funding
The Public Sector Decarbonisation Scheme Phase 4 is closed to new applications and was for eligible public bodies, not private businesses.
Questions
Is LED lighting eligible for full expensing?
Usually not, because building lighting is normally an integral feature in the special-rate pool. The AIA or the 50% first-year allowance may apply instead. Check with your accountant.
Related services
LED lighting upgrades
Swap fluorescent, halogen and metal halide fittings for efficient LED.
Warehouse lighting
LED high bays and aisle lighting for warehouses and distribution sites.
Office lighting
Glare-free LED lighting for desks, meeting rooms and receptions.
Lighting controls
Presence detection, daylight dimming and DALI systems.
Last reviewed 9 November 2026. This guide is general information, not legal, tax or engineering advice for a specific site.