Missing out on the super-deduction allowance?

The super-deduction scheme was introduced on 1 April 2021 and will run until 31 March 2023. It allows firms investing in qualifying plant and machinery assets to benefit from a 130 per cent first-year capital allowance.

This allows companies to cut their tax bill by up to 25p for every £1 they invest. Most companies also benefit from a 50 per cent first-year allowance for qualifying special rate (including long life) assets.

To benefit from the relief, the assets purchased must be new and not second hand or refurbished equipment, nor purchased from a related party. Cars will not qualify.

The relief is also only available to incorporated companies.