The super-deduction and special rate first year allowance temporarily increase reliefs for companies on qualifying expenditure on plant or machinery from 1 April 2021 to 31 March 20231. HMRC guidance can be found at CA23161 onwards HMRC has launched an interactive tool to help companies check if they can claim the super-deduction or the special rate first-year allowances. These are valuable reliefs where the date of expenditure is important for the asset to qualify so businesses will need to maintain records of dates of acquisition especially for larger projects that span 1 April 2021 and 1 April 2023. The claim must be made in the year when the expenditure is incurred and under the rules for first-year allowances the asset must be owned by the company in the same chargeable period in which the expenditure is incurred2.
In summary the additional reliefs are split into two types:
• a super-deduction of 130% allowances on new plant or machinery that is not special rate expenditure, ie it would ordinarily qualify for
Web page updated on 17 Mar 2025 16:17
