Capital Allowances – Super Deduction

Capital Allowances – Super Deduction

In his budget the Chancellor announced a so-called Super Deduction for capital expenditure incurred by Companies.  This will apply for expenditure incurred from 1 April 2021 up to and including 31 March 2023.

  • A first-year allowance of 130% on most new plant and machinery investments that would ordinarily qualify for the writing down allowance of 18%
  • A first-year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances

Relief will not apply where contracts for expenditure were entered into before 3 March 2021.  Some expenditure will be excluded from the super deduction.

This could be of significant benefit to your company which may require forward planning.  For further information please contact the tax team at Haslers.

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Capital Allowances - Super Deduction
Capital Allowances – Super Deduction

 

We understand how complicated navigating through the complexities of the UK tax regime, while maintaining compliance with HM Revenue & Customs’ regulations can be.

Changes in law, practice, or in the approach of authorities can have a major impact and incur costs, yet tax concessions can be significant where they apply. Our team will guide you seamlessly through the maze of compliance, planning and efficiencies to minimise risk and maximise growth opportunity. We provide commercially driven and risk-assessed advice aimed to maximise tax-efficiency and maintain compliance for you, your business and your family.

Our clients include owner-managed businesses, start-ups, corporate companies, private individuals, multi-generational families, subsidiaries of foreign corporations, and not-for-profit organisations for whom we provide personal and executive advice, corporation tax, both domestic and international, of private companies, trusts and estates.