Super-Deduction on Capital Purchases
For expenditure incurred from 1 April 2021 'till 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 as much as 25p.
The new Capital Allowances offer
As a result of measures announced at this Budget, businesses will now take advantage of four significant capital allowance measures:
o The super-deduction – which offers 130% first-year relief on qualifying main rate plant and machinery investments until 31 March 2023 for businesses.
o The 50% first-year allowance (FYA) for special rate (including long life) assets until 31 March 2023 for companies.
o Annual Investment Allowance (AIA) providing 100% relief for plant and machinery investments as much as its highest ever lb1 million threshold, until 31 December 2021.
o Within Freeport tax sites, companies can access new Enhanced Capital Allowances (ECA+) and companies, individuals and partnerships can usually benefit from a heightened degree of Structures & Buildings Allowance (SBA+) for investments until 30 September 2026.
