Super-deduction
A new 130% first-year capital allowance for qualifying plant and machinery assets; and a 50% first-year allowance for qualifying special rate assets.
From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:
- a 130% super-deduction capital allowance on qualifying plant and machinery investments
- a 50% first-year allowance for qualifying special rate assets
The super-deduction will allow companies to cut their tax bill by up to 25p for every 拢1 they invest, ensuring the UK capital allowances regime is amongst the world鈥檚 most competitive.
The government has offered unprecedented support for businesses during Covid. Even so, pandemic-related economic shocks and the accompanying uncertainty have chilled business investment. This super-deduction will encourage firms to invest in productivity-enhancing plant and machinery assets that will help them grow, and to make those investments now.
See the for more information.
Find out about technical guidance on the super-deduction and special rate allowance in chapter CA23161 of the HMRC Capital Allowances Manual.
Updates to this page
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Super-deduction factsheet added.
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First published.