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How 'SUPER' is the Super-Deduction?

For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on equipment purchases with NO UPPER LIMIT!

This also includes qualifying new assets purchasing using finance. This means that not only can spread the cost of purchase, over a number of years, through an Approved Business Finance facilitated agreement but you can also reclaim the Super Deduction when purchasing qualifying equipment (with no upper limits).

The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest. This provides significantly faster tax relief for qualifying investments, helping businesses to invest and grow.


What does this mean in practice? A company incurring the following amounts of qualifying expenditure who decides to claim the super-deduction can achieve the potential savings below:

Who can participate? Only companies who pay corporation tax can take advantage of this tax incentive. However, sole traders and partnerships can look to still take advantage of the Annual Investment Allowance which is currently set at £1million and is in place until 31st December 2021.

What expenditure qualifies? Expenditure must be on equipment such as new or unused plant machinery, factory fit outs, scaffolding and catering equipment (exclusions apply, speak to one of our AMs for more detail). Expenditure needs to be incured on or after 1 April 2021, but before 1 April 2023. Most tangible capital assets used in the course of a business are considered equipment, plant and machinery for the purposes of claiming capital allowances.


If you are looking to purchase assets, please contact one of our experienced Account Managers on:

T: 01908 429888

For media enquiries please contact



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