The End of the Super-Deduction

The Super-Deduction isn’t so super if your Company’s accounting year end is after 31^st March 2023!

Between 1^st April 2021 to 31^st March 2023, Companies have been able to benefit from a new 130% first year capital allowance for investing in new plant and machinery.

For Companies that have purchased qualifying assets before 31^st March 2023 but have an accounting year end after 31^st March 2023 will have their Super-Deduction rate reduced based on the number of days falling inside the qualifying period.

For example, if a Company’s accounting year ends on 30^th September 2023 they will only be able to benefit from 115% Super-Deduction for assets purchased in their qualifying period i.e. 31^st October 2022 to 31^st March 2023.

If you would like to discuss your specific situation, contact your local Whitings office today.

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