Super-deduction capital allowances to end 31st March 2023

The super-deduction was an incentive introduced by HMRC to allow companies to claim 130% first year allowances on new plant and machinery purchased between 1st April 2021 and 31st March 2023, meaning that for every £1 spent on these assets the companies were able to reduce their taxable profits by £1.30.

This incentive will be coming to an end on 31st March 2023 therefore if your company was looking to purchase new plant and machinery it would be more tax efficient to do this before the scheme comes to an end.

Qualifying assets include commercial vehicles, computer equipment, office furniture, tools and equipment, these assets must be purchased new, second-hand items do not qualify for the super-deduction allowances.

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