From 01 April 2021 to 31 March 2023, companies can claim 130% capital allowances in qualifying plant and machinery investments. The super-deduction will allow companies to cut their tax bill by 0.25p for every £1 they invest.
Business will now benefit from 4 capital allowance measures:
- A 130% super-deduction allowance on qualifying investments, until March 31 2023
- A 50% first-year allowance for qualifying special rate assets, until March 31 2023
- Annual Investment Allowance providing 100% relief for plant and machinery investments up to its £1m threshold, until 31 December 2021
- Within Freeport Tax Sites, companies can access Enhanced Capital Allowances, and companies, individuals and partnerships can benefit from increased level of Structure and Buildings Allowance until 30 September 2026
The kinds of assets which may qualify include (but are not limited to):
- Solar panels
- Computer equipment and servers
- Office chairs and desks
- Electric vehicle charge points
- Refrigeration units
- Foundry equipment
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