Following the announcement at the 2021 Budget of a new ‘Super Deduction’ investment incentive, HM Treasury have published a factsheet on the new initiative. This is ahead of full technical guidance being published in due course.
- For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments.
- Under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p.
- This change makes the UK’s capital allowance regime more internationally competitive, lifting the net present value of our plant and machinery allowances from 30th in the OECD to 1st.