Starting April 2021, a UK government scheme offered a new 130% first-year capital allowance for qualifying plant and machinery assets; and a 50% first-year allowance for qualifying special rate assets. The incentive would allow companies to cut their tax bill by up to 25p for every £1 they invest and was aimed at boosting business investment following a period of pandemic-induced uncertainty. ” This super-deduction will encourage firms to invest in productivity-enhancing plant and machinery assets that will help them grow, and to make those investments now,” the government noted.
As planned, the super-deduction initiative will come to an end on 31 March 2023 and firms are encouraged to take advantage of it before the deadline. Only businesses paying UK corporation tax can benefit from the scheme, as it is not available to individuals, partnerships and LLPs.
For detailed guidance, visit GOV.UK.
