Super-deduction - Making your investment go further with 130% Tax Relief!

May 30, 2023

What is super-deduction?

It’s new temporary tax relief.

When limited companies buy certain new equipment (including computers) you can claim 130% capital allowance.

So if you spend £1,000 on Computer equipment, it will reduce your corporation tax bill as if they had spent £1,300.

When does it start & finish

It’s started now, 1st of April 2021 & will run until 31st March 2023.

Want to learn more?

The UK Gov has a handy lowdown plus a PDF with extra details. We’d always recommend checking in with your accountants as well.

What the UK Gov has to say

The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring the UK capital allowances regime is amongst the world’s most competitive. The government has offered unprecedented support for businesses during Covid. Even so, pandemic-related economic shocks and the accompanying uncertainty have chilled business investment. This super-deduction will encourage firms to invest in productivity-enhancing plant and machinery assets that will help them grow, and to make those investments now.