Tax Tips - Super-deduction


Companies are able to benefit from a super-deduction for capital expenditure. The super-deduction takes the form of a first-year capital allowance. It is available for most expenditure that would otherwise benefit from main rate writing down allowances at the rate of 18%, although cars are excluded. Where the expenditure qualifies for the super-deduction, the first-year allowance is given at the rate of 130% of the qualifying expenditure.


A balancing charge may apply if the asset is disposed of.


The super-deduction is only available for expenditure which is incurred between 1 April 2021 and 31 March 2023.


Contact us to see whether you can benefit from the super-deduction.