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:
- 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
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.