Up to 31st March 2023, a Ltd company will qualify for a 130% capital allowance deduction on any investments it makes in main rate (main pool) plant and machinery.
Your ‘Super-deduction’ allowance includes all new plant and machinery that would ordinarily qualify for the 18% main pool rate of capital allowances.
Examples include
- Computer equipment and servers
- Tractors, lorries, vans
- Ladders, drills, cranes
- Office chairs and desks
- Electric vehicle charge points
- Refrigeration units
Important things to note
- You need to have spent the money during the time period specified, i.e. between 1 April 2021 and 31 March 2023.
- Excludes the following:
- Cars
- Shares & investments
- Residential property
- Plants & machinery on a lease
How our team at Modus Accountants can help
Clearly, we wouldn’t suggest purchasing something just to take advantage of this. However, if you are thinking about purchasing a qualifying asset, then you can time the purchase in line with this.