Super-Deduction Capital Allowance

In early 2021, the Government announced a Super-Deduction capital allowance as part of their support for businesses during Covid. This allowance means companies are able to cut their tax bill by up to 25p for every £1 they invest by claiming a 130% allowance on qualifying plant and machinery investments.

What is plant and machinery?

Most tangible capital assets used in the course of a business are considered plant and machinery for the purposes of claiming capital allowances. There is not an exhaustive list of plant and machinery assets. The kinds of assets which may qualify for either the super-deduction 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

• Foundry equipment

The Super-Deduction Capital allowance is for expenditure incurred until the end of March 2023 so make sure to purchase any plant and machinery in the next two months to not miss out.