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Super-deduction is coming to an end…

Thursday, January 18, 2024
JordanWyatt

Back in April 2021 we shared a blog article on our website about super-deduction. Super-deduction was a scheme introduced following the pandemic to try and boost capital spending. The scheme provided 130% relief to corporation tax paying businesses when purchasing new (not used) qualifying plant and machinery and a 50% first-year allowance for qualifying special rate assets between 1st April 2021 and 31st March 2023. 

The scheme enabled companies to cut their tax bill by up to 25p for every £1 they invested in plant and machinery making the UK’s capital allowances regime amongst the most competitive in the world. 

As stated above, this scheme is coming to an end as of 31st March this year. Therefore, if you’re planning on investing in plant or machinery for your business, that would qualify under the rules of the super-deduction scheme, NOW is the time to do it! Don’t delay – make those purchases before 31st March or you will miss out.  

You can find out if your planned purchase would qualify for super-deduction by checking out HMRC’s factsheet at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/967202/Super_deduction_factsheet.pdf  

There are some restrictions, for example this scheme does not cover the purchase of cars, so it’s best to check before you buy! You can also contact contact.capitalallowances@hmrc.gov.uk for further clarification. 

As always, our tax experts are more than happy to discuss your plans and answer any questions you might have. Simply give us a call on 01255 425059 or email us at 
info@ellacottmorris.co.uk 

Don’t forget that our blog is filled with helpful information about ways to save or spend wisely and lots of other topics too. Take a look - www.ellacottmorris.co.uk/ellacott-morris-blog/ 


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