Super Deduction coming to an end

1 month, 3 weeks ago by Oliver Atkinson

The ‘Super-Deduction’ on capital allowances has been available since the 1st of April 2021, giving companies the opportunity to invest in new assets and receive extra corporation tax relief on their purchases.

For those companies investing in new plant & machinery assets since this date, they have been able to receive not only a 100% first year allowance on qualifying assets, but an extra 30% on top – an effective rate of 24.7% corporation tax relief rather than the usual 19% available under the Annual Investment Allowance.

Companies have also been able to claim the special rate deduction, with a 50% allowance on long-life assets that would otherwise only qualify for the standard special rate of 6% such as vehicles with high CO2 emissions or air conditioning systems.

However, the scheme is due to come to a close early next year as planned, and so as of the 31st of March 2023 the Super-Deduction will end, with any assets purchased after this date will no longer qualifying for this relief.

If your company is intending to make an investment in new plant and machinery or long-life assets in the near future, be sure to consider the relief available when timing your purchase to ensure you can make use of the relief before it comes to end.

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