Paul Farey (AECOM) explains why care should be exercised in respect to the relevant contract date and how indirect costs and the timing of expenditure are important in any claim.
In accordance with FA 2021 ss 9–14 companies within the charge to corporation tax are entitled to special rates of capital allowances for expenditure incurred on new and unused plant and machinery from 1 April 2021 until 31 March 2023. This measure consists of a first-year allowance (FYA) of 130% for main pool assets referred to as a ‘super-deduction’. Main pool assets would normally qualify for 18% annual writing-down allowances on a reducing balance basis. There is also a 50% FYA for assets within the special rate pool which is called ‘SR allowance’. The balance of the special rate expenditure is added to the special rate pool and the normal 6% annual writing-down allowance is also available.
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Paul Farey (AECOM) explains why care should be exercised in respect to the relevant contract date and how indirect costs and the timing of expenditure are important in any claim.
In accordance with FA 2021 ss 9–14 companies within the charge to corporation tax are entitled to special rates of capital allowances for expenditure incurred on new and unused plant and machinery from 1 April 2021 until 31 March 2023. This measure consists of a first-year allowance (FYA) of 130% for main pool assets referred to as a ‘super-deduction’. Main pool assets would normally qualify for 18% annual writing-down allowances on a reducing balance basis. There is also a 50% FYA for assets within the special rate pool which is called ‘SR allowance’. The balance of the special rate expenditure is added to the special rate pool and the normal 6% annual writing-down allowance is also available.
Whilst...
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