Finances

Capital allowances – fact sheet

Is your business taking full advantage of the super-deduction capital allowances announced in the Spring Budget 2021?

08 Feb 2022 . 2 min read

Download our fact sheet at the end of this feature to see how the super-deduction tax incentive means companies can claim a 130% first-year allowance for expenditure on main pool qualifying assets such as machinery, furniture, fittings, computers etc.

And the enhanced special rate is a 50% first-year allowance for assets including integral features in buildings, such as electrical, water and heating systems.

These are in addition to the existing Annual Investment Allowance (AIA) which permits 100% relief for up to £1m of expenditure incurred each year on qualifying plant and machinery assets, until 31 March 2023.

According to Deloitte’s CFO Survey, 2022 will be a year of rising business investment. The Big Four firm says a record 37% of CFOs cite increasing capital investment as a strong priority for their business in the next 12 months, with CFOs rating growth at home and abroad and the climate transition as the main drivers of investment.

Gurj Sandhu, Partner, National Head of Capital Allowances with UK accountancy firm Azets, says: “Business owners should look carefully at the timing of planned investment in new assets to take full advantage of the enhanced allowances. Up to 31 March 2023, the additional tax savings through super allowances will be most beneficial to companies that have already absorbed the 100% relief available through the AIA.”

Download the factsheet

Capital allowances factsheet (PDF, 159KB)

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