23rd April 2021 / Tax

The Super Deduction and how it benefits businesses

Just in case you missed it in our Spring Budget release last month, this new tax relief is for those businesses that buy plant and machinery.

Since the start of the pandemic, investment levels in business have fallen quite dramatically so the Government is introducing this Super Deduction to encourage more investment in our businesses, continuing the trend of improving our economic growth.

What is the Super Deduction?

The Super Deduction will provide tax relief for companies investing in qualifying plant and machinery. They can claim a 130% capital allowance deduction for £1 of qualifying expenditure.

Here are some of the more common items that can be classed as plant and machinery:

  • Solar panels

  • Computer equipment and servers

  • Tractors, lorries, vans

  • Ladders, drills, cranes

  • Office chairs and desks,

  • Electric vehicle charge points

  • Refrigeration units

  • Compressors

  • Foundry equipment

The amount of capital allowance can and will vary, so if this is something you're thinking about looking into, it's best to check out HMRC for guidance. There's also this handy fact sheet that explains the thinking behind it, as well as the eligibility criteria.

The government continues to try to stimulate the economy by offering relief in a lot of areas. If you qualify, this could be a useful incentive to invest money into your business to claim back the capital allowance against profits.


If you are in doubt as to how this affects you then get in touch, we'd be happy to talk you through it. Our office is in West Bridgford, Nottingham but we support companies throughout the UK.

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