Only applies to:
Companies within charge to Corporation Tax
Covers expenditure incurred from 1st April 2021 to 31st March 2023
Only relates to new and NOT used/second-hand assets
Applies an enhanced first-year allowance (FYA)
Main Pool Rate
Property Embedded Fixtures and Fittings
Computer Equipment
Office Equipment
...And much more
Special Rate Pool
Solar Panels
Water Pipes
Electrical Systems
...And much more
Businesses will now benefit from four significant capital allowance measures:
The super-deduction
That offers 130% first-year relief on qualifying main rate plant and machinery investments until 31 March 2023 for companies
The 50% first-year allowance
For special rate (including long life) assets until 31 March 2023 for companies.
Annual Investment Allowance (AIA)
Providing 100% relief for plant and machinery investments up to its highest ever £1 million thresholds, until 31 March 2023
Freeport Tax Sites
Companies can access new Enhanced Capital Allowances (ECA), and companies, individuals, and partnerships can benefit from an increased level of Structures & Buildings Allowance (SBA) for investments until 30 September 2026.
FAQ's
What qualifies for super-deduction?
Super-deduction can be claimed against many items of plant and machinery. The expenditure must have been incurred between 1 April 2021 and 1 April 2023.
What assets qualify?
Some examples of qualifying assets are:
Office furniture, computers, and warehouse machinery.
There are many more qualifying assets. Get in touch with our team to find out more.
When did super-deduction start?
On 3 March 2021 the government announced the new super-deduction tax relief to enhance investment within businesses. This is scheduled to end on 31 March 2023, limiting the time period companies have to benefit from this relief.
Is super-deduction for companies only?
Yes, this tax relief is only available to companies that are subject to Corporation Tax.