Super Deduction Capital Allowances
Overview
From 01st April 2021 to 31st March 2023 companies investing in qualifying new plant and machinery assets will be able to claim:
130% super-deduction capital allowance on qualifying plant and machinery investments
50% first year allowance (FYA) for qualifying special rate assets
The deduction will allow companies to cut their tax bill by 25p for every £1 they invest
The deduction will encourage firms to invest in productivity-enhancing plant and machinery assets that will help them grow
The new Capital Allowances offer
Super-deduction – offers 130% first-year relief on qualifying main rate plant and machinery investments until 31st March 2023 for companies
50% first-year allowance for special rate assets until 31st March 2023 for companies
Annual Investment Allowance – provides 100% relief for plant and machinery investments up to the highest ever threshold of £1 million, until 31st December 2021
Through Freeport tax sites, companies can access new Enhanced Capital Allowances, and companies, individuals and partnerships can benefit from an increased level of Structures and Buildings Allowance for investments until 30th September 2026
What is plant and machinery?
Most tangible capital assets used in the course of a business are considered plant and machinery for the purposes of claiming capital allowance
The types of assets which may qualify for either the super-deduction or the 50% FYA include, but are not limited to:
Solar panels
Computer equipment and servers
Tractors, lorries, vans
Ladders, drills, cranes
Office chairs and desks
Electric vehicle charge points
Refrigeration units
Compressors
Foundry equipment
Please let me know if you have any questions or if we can be of any further help.
