Super-deduction: Time is running out

12th December 2022

Incorporated businesses have until 31 March 2023 to claim 130% capital allowances on expenditure on certain fixed assets. This ‘super deduction’ was introduced in April 2021 to help companies continue to invest in plant and machinery after the pandemic.


Assets must be purchased new to benefit from the relief and it does not apply to all expenditure, for example cars are excluded. For many smaller businesses, with profits under £50k, there is a real tax benefit of bringing planned expenditure forward to make use of this generous allowance. For larger businesses, deferring CapEx until after 31 March 2023 does not tax disadvantage you (due to the way the maths works, taking into account the corporation tax rate rise from 19% to 25%).


Non-incorporated businesses continue to benefit from the Annual Investment Allowance. This allows 100% of qualifying expenditure to be deducted in the year of purchase. This rate will again apply to companies from 1 April 2023.

Disclaimer - All information in this post was correct at time of writing.
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