HMRC has published a new factsheet Budget 2021: Super-deduction setting out basic details for the enhanced capital allowances available to companies for expenditure on qualifying plant and machinery between 1 April 2021 and 31 March 2023.
The Treasury factsheet highlights ‘four significant capital allowances measures’:
130% ‘super-deduction’ first-year allowance (FYA) on qualifying main rate plant and machinery (companies only);
50% FYA for special rate assets (companies only);
100% annual investment allowance (£1m investment cap until 31 December 2021); and
within freeport tax sites: enhanced capital allowances (companies only), and 10% structures and buildings allowance (increased from 3%), for companies, individuals and partnerships.
The factsheet sets out a useful table summarising eligibility of different types of investments for the different capital allowances, and an example which contrasts the position for a company making the same investment before and after the introduction of the super-deduction.
The Treasury intends to publish full technical guidance ‘in due course’.
HMRC has published a new factsheet Budget 2021: Super-deduction setting out basic details for the enhanced capital allowances available to companies for expenditure on qualifying plant and machinery between 1 April 2021 and 31 March 2023.
The Treasury factsheet highlights ‘four significant capital allowances measures’:
130% ‘super-deduction’ first-year allowance (FYA) on qualifying main rate plant and machinery (companies only);
50% FYA for special rate assets (companies only);
100% annual investment allowance (£1m investment cap until 31 December 2021); and
within freeport tax sites: enhanced capital allowances (companies only), and 10% structures and buildings allowance (increased from 3%), for companies, individuals and partnerships.
The factsheet sets out a useful table summarising eligibility of different types of investments for the different capital allowances, and an example which contrasts the position for a company making the same investment before and after the introduction of the super-deduction.
The Treasury intends to publish full technical guidance ‘in due course’.
