Temporary tax reliefs on qualifying investments

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

1. Super deduction offering 130% first-year relief on qualifying main rate plant and machinery investments until 31^st March 2023
2. 50% first-year allowance (FYA) for a special rate (including long life) assets until 31^st March 2023 for companies
3. Annual Investment Allowance (AIA) providing 100% relief for plant and machinery investments up to £1 million until 31^st 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.