Announced in the Budget 2021, a new “super deduction” is available to incorporated businesses incurring expenditure on qualifying plant and machinery.

The super deduction of 130% has been introduced to help boost investment rates and will cover expenditure incurred between the 1st April 2021 and the 31st March 2023. This enables companies to generate a £24.70 reduction in corporation tax for every £100 invested on qualifying expenditure.

What qualifies as plant and machinery?

The deduction enables companies to claim capital allowances of 130% of the cost of all qualifying expenditure, which includes:

• IT and office equipment
• Solar panels
• Energy efficient lighting
• New factory equipment like automation, warehouse machinery, data centres and industrial handling equipment like forklift trucks

For more information, click here to go to the government's Super Deduction factsheet or get in touch to discuss this in more detail with us. 

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