Andrew McQueen
The 130% super-deduction for companies that invest in new plants and machinery applies where the expenditure incurred between 1 April 2021 and 31 March 2023. Many companies recovering from the coronavirus pandemic have not had the resources to commit, and the war in Ukraine may have made them reluctant to invest until the political and economic situation stabilises. Thankfully the special tax relief announced in the Spring 2021budget will be available for expenditure up until 31 March 2023 potentially saving £247 for every £1,000 invested in new equipment.
It is hoped that the current £1 million Annual Investment Allowance (AIA) will continue to be held at that level once the super-deduction ends. Note that the AIA is available to unincorporated businesses as well as limited companies and for secondhand and new equipment.