To help with the economic recovery, the Chancellor announced two new enhanced capital allowances. From 1st April 2021 to 31st March 2023 companies can claim 130% first year relief on qualifying plant and machinery. That means a super-deduction of 130% of the investment incurred on most business equipment! 

Who Can Claim?
Companies that pay Corporation Tax and invest in plant/machinery on or after 1 st April 2021 – 31st March 2023. Sole traders, partnerships and LLPs do not qualify.(they qualify for AIA however)
 
Which Assets Qualify?
The Capital Investment must be in new and unused plant and machinery and there is no expenditure limit. Assets CAN be funded via Hire Purchase Agreements. The Special Rate relief is also a 1st year allowance of 50% for assets that would usually qualify for the special rate of 6% tax relief.                            
 
Eligible Assets for Super-Deduction                           
Cranes & diggers                                                            
Machinery & tooling                                                            
Lifts                                                                                                                       
Computer Equipment & software                                             
Office Furniture                                                                                     
Commercial Vehicles such as tractors, lorries & vans (not cars)             

Eligible Assets Special Relief (50% FYA)
Electrical & lighting systems
Air conditioning systems
Hold & cold water systems
Solar shading                        
                   
Just ask us if you are unsure if an item qualifies.

Any purchase must fit into your tax year. If you are thinking of purchasing any type of asset listed with a lead time for delivery of up to 6 months - now is the time to do it!

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