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Super-deduction tax relief

If you have been considering investing in new machinery or plant equipment now is the time. The Government have introduced a new 130% first-year capital allowance for qualifying plant and machinery assets; and a 50% first-year allowance for qualifying special rate assets for purchases between 1 April 2021 until 31 March 2023*.


From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:

  • a 130% super-deduction capital allowance on qualifying plant and machinery investment

  • a 50% first-year allowance for qualifying special rate assets


The temporary tax relief will allow companies to cut their tax bill by up to 25p for every £1 they invest. The scheme is designed to help encourage businesses to invest in productivity-enhancing plant and machinery assets that will help them grow.


(*excludes expenditure incurred on contracts entered into prior 3 March 2021.)



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