HMRC Announce Extra Tax Relief for Capital Investment

Companies who invest in plant and machinery on or after 1 April 2021 up to and including 31 March 2023, can claim extra tax relief:

extra tax relief will be available on new IT equipment like this
IT equipment is included in the extra tax relief measure
  • A super-deduction providing allowances of 130% on most new plant and machinery investments instead of the 18% main rate writing down allowances
  • A first year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances

There will be exclusions for:

  • Used and second-hand assets and
  • Expenditures on contracts entered into prior to 3 March 2021 even if expenditures are incurred after 1 April 2021
  • Cars 

If you’re planning to invest in new plant and equipment – anything from a laptop to a manufacturing production line – it might be worth delaying the purchase until after 31 March.

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