Temporary tax reliefs on qualifying investments

This applies to companies within the charge to Corporation Tax investing in plant and machinery on or after 1st April 2021. The companies can claim for the investments made in qualifying expenditures between 1st April 2021 and 31st March 2023:

  1. Super deduction offering 130% first-year relief on qualifying main rate plant and machinery investments until 31st March 2023
  2. 50% first-year allowance (FYA) for a special rate (including long life) assets until 31st March 2023 for companies
  3. Annual Investment Allowance (AIA) providing 100% relief for plant and machinery investments up to £1 million until 31st December 2021.
  4. Within Freeport tax sites, companies can access new Enhanced Capital Allowances (ECA+) and companies, individuals and partnerships can benefit from an increased level of Structures & Buildings Allowance (SBA+) for investments until 30 September 2026

The super-deduction will allow companies to reduce their tax bill by up to 25p for every £1 invested, thus stimulating companies to make additional investments and bringing planned investments forward.

More details on the new temporary tax reliefs on qualifying company assets can be found here.