8 March 2023

The Company Capital Allowance Super Deduction Ends 31 March 2023

The 130% capital allowances super deduction for companies purchasing new qualifying assets end in the next few weeks.

What is the super deduction?

The government introduced this new relief to encourage spending to kickstart the economy post-covid from 1 April 2021 to 31 March 2023. The super deduction allows you to deduct 130% of the cost of qualifying equipment from your profits before tax. Effectively the deduction will allow companies to cut their tax bill by up to 25% for every pound they invest rather than the usual 19%.

What should I do?

If you have a limited company and are considering purchasing equipment, do it before the end of the month.

The HMRC guidance is here

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