Capital Allowances – Super Deduction
- From 1st April 2021 until 31st March 2013, companies who invest in qualifying plant & machinery will be eligible for a 130% capital allowance deduction.
- This essentially allows companies to reduce their taxable profits by 130% of the value of the assets purchased (with no upper cap to the relief available).
- Normally, qualifying plant & machinery would have been eligible for a 100% capital allowance deduction up to a maximum annual limit.
- For assets that fall under the ‘special rate pool’ category, they are eligible for an accelerated relief of relief at 50% (normally these assets only attract relief at 6%)
- The new Super Deduction is only available to limited companies.
- The relief is for new, unused plant & machinery – not second-hand assets.
- As with any new tax incentives, there are various pitfalls and issues to consider.
- Therefore, it is important to plan accordingly.
- If you are considering purchasing any plant & machinery and would like to discuss the tax relief available please do not hesitate to contact us at email@example.com or call on 028 8775 5880.