Budget 2021 - “Super-deduction” introduced from 1 April 2021 – 31 March 2023

03 March 2021

In a bid to help companies grow, the chancellor announced that from 1 April 2021 until 31 March 2023, any company investing in qualifying new plant and machinery assets will be able to claim:

  • 130% super-deduction capital allowance on qualifying plant and machinery investments
  • 50% first-year allowance for qualifying special rate assets

The introduction of the super-deduction will allow companies to reduce their tax bill by up to 25p for every £1 that they invest, to ensure that the UK capital allowances regime is amongst the world’s most competitive.

This super-deduction’s aim is to encourage firms to invest in productivity-enhancing plant and machinery assets that will help them grow, and urge them to make those investments imminently.


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