The new capital allowance legislation:
Since the COVID-19 pandemic, business investment levels have fallen, the government is introducing the super-deduction to stimulate business investment.
The super-deduction – which offers 130% first-year relief on qualifying main rate plant and machinery investments until 31 March 2023 for companies.
The 50% first-year allowance for special rate (including long life) assets until 31 March 2023.
Annual Investment Allowance providing 100% relief for plant and machinery investments up to it’s highest ever £1 million threshold, until 31 December 2021.
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 allowance.
Examples of the kind of assets which may qualify for either the super-deduction or the 50% FYA:
For further details see: Super_deduction_factsheet.pdf (publishing.service.gov.uk), or speak to your accountants.