For capital expenditure incurred from 1st April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments.
Under the super-deduction, for every pound a company invests on qualifying investments, their taxes are cut by 25p.
This makes 2022 an ideal time to invest in new plant and equipment for your business and take advantage of this generous writing down provision.
Below are some examples of the difference that the Super Deduction scheme can make, with a calculation of the additional tax (so actual cash) savings highlighted green in the right-hand column on the table:
But remember, this scheme ends in March 2023 so make sure you plan to ensure that you make the most of it while it’s available.