Super-Deduction and 50% First Year Capital Allowances

Between 1 April 2021 and 31 March 2023, companies investing in qualifying new plant and machinery will be able to benefit from generous new first year Capital Allowances.

Under this new measure, for most business equipment purchased, there will be a 130% ‘Super Deduction’ against taxable profits.                                                                                      For new additions qualifying for Special Rate relief, this expenditure will benefit from a 50% first year allowance.