Incorporated businesses only have until 31 March 2023 to benefit from the opportunities available to them under the super-deduction capital allowance.
The super-deduction is a temporary capital allowance scheme that allows companies to invest in new qualifying plant and machinery and is perhaps more generous than any other scheme that has come before.
Available since 1 April 2021, the super-deduction and associated first-year allowance, is an excellent incentive for investment, but companies need to act quickly to take advantage of it.
Using this new measure, companies can claim a super-deduction providing an allowance of 130 per cent on most new plant and machinery investments that ordinarily qualify for main rate writing down allowances.
They can also use the first-year allowance of 50 per cent on most new plant and machinery investments that ordinarily qualify for special rate writing-down allowances.
There is not an exhaustive list of plant and machinery assets. The kinds of assets which may qualify for either the super-deduction or the 50 per cent FYA include, but are not limited to:
Solar panels
Computer equipment and servers
Tractors, lorries, vans
Ladders, drills, cranes
Office chairs and desks,
Electric vehicle charge points
Refrigeration units
Compressors
Certain expenditure is excluded, for example, the acquisition of company cars. To benefit from the relief the assets purchased must also be new and not second-hand or refurbished equipment.
The relief is only available to limited companies, but unincorporated businesses can continue to benefit from the Annual Investment Allowance (AIA), which permits a deduction of 100 per cent for qualifying plant or machinery expenditure up to the threshold of £1 million.
If you want to make a claim via this capital allowance scheme, now is the time to take action. If you would like assistance making a claim for this tax relief, please contact your Seymour Taylor representative today or email enquiries@stca.co.uk or call 01494552100.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 15th November 2022.