For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments.
Under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p.
The new Capital Allowances offer
As a result of measures announced at this Budget, businesses will now benefit from four significant capital allowance measures:
• The super-deduction – which offers 130% first-year relief on qualifying main rate plant and machinery investments until 31 March 2023 for companies.
• The 50% first-year allowance (FYA) 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 threshold, until 31 December 2021.
• Within 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.
Click here for the super deduction facts sheet