Companies can claim super-deduction from 1 April
08/04/2021

The new super-deduction tax break, that will allow companies to deduct 130% of the cost of any qualifying investment from their taxable profits, is available on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances. This means that for every £1 a company invests they can reduce their Corporation Tax bill by up to 24.7p. The new temporary tax relief applies on qualifying capital asset investments from 1 April 2021 until 31 March 2023. 

The super-deduction is designed to help companies finance expansion in the wake of the coronavirus pandemic and help to drive growth. This change makes the Capital Allowance regime more internationally competitive, lifting the net present value of the UK’s plant and machinery allowances from 30th in the OECD to 1st.

Commenting on the introduction of the super-deduction, the Chancellor of the Exchequer Rishi Sunak said:

'The super-deduction is the biggest two-year business tax cut in modern British history – driving our economy by helping businesses to invest, grow and support our Plan for Jobs. I urge firms across the UK to invest in our recovery by taking advantage of this great opportunity.'

An enhanced first year allowance of 50% on qualifying special rate assets has also been introduced for expenditure within the same period. This includes most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances. 

The measures have effect in relation to qualifying expenditure from 1 April 2021 and excludes expenditure incurred on contracts entered into prior to Budget day on 3 March 2021. 


Contact us

Main Office
33a Portsmouth Rd
Woolston
Southampton
SO19 9BA
 
Tel: 02382 123 336
E:   This email address is being protected from spambots. You need JavaScript enabled to view it.
 
 

Hampshire

Satellite Office
The Old Bond Store
Back of the Walls
Hampshire
Southampton
SO14 3BH
 
Tel: 0345 222 1066 / 02382 123 336
 
 

Surrey

Satellite Office
16 Imber Grove
Esher
Surrey
KT10 8JD
 
Tel: 0345 222 1066 / 02382 123 336
 
 
 

Wartling

Satellite Office
Well House
Wartling Road
Wartling
Eastbourne
BN27 1RX
 
Tel: 0345 222 1066 / 02382 123 336
 
 

Visit Us

Monday - Friday 09:00- 1730​
Evening and Weekend appointments
are available on request​.
 
To make an appointment,
please email hello@genio-accountants
or call us on 02382 123 336.

Newsletter Sign Up

With our newsletter, you automatically receive our latest news by  e-mail and get access to the archive including advanced search options!

Newsletter Sign Up  |  Login

GoCardless