A G Smith & Co

Corporation Tax Super Deduction

Corporation Tax Super Deduction

Posted on 15/09/2021 by Jordan Smith

From now until 31st March 2023, a first year “Super Deduction” allowance of 130% is given to companies (not sole traders or partnerships) who incur capital expenditure on new and unused qualifying plant & machinery.

As an example, £10,000 of qualifying expenditure will be worth £13,000 for Corporation Tax purposes, and the effective Corporation Tax savings is £13,000 @ 19% = £2,470. Please be aware that if this plant is subsequently sold before 31st March 2023, some of the 130% allowance will be clawed back.

This allowance is only available to companies.

The following expenditure will not qualify:

  • Cars
  • Electric cars
  • Long life assets
  • assets leased out in the course of a letting or leasing business
  • Integral features
  • Solar panels

There are a lot of restrictions and tax-planning scenarios relating to this allowance. If you are thinking of spending any money on plant and machinery equipment prior to 31st March 2023, please call us to discuss beforehand.

Case Studies


A Refrigeration Company with Cash at Year-End 1. A Refrigeration Company with Cash at Year-End Andrew Smith (FCCA), Director Find out more >
A Taxi Company Moving into the Digital World 2. A Taxi Company Moving into the Digital World Jordan Smith (BSc) Find out more >
Small Sole-Trader Wind-Up: Securing Income for Husband & Wife 3. Small Sole-Trader Wind-Up: Securing Income for Husband & Wife Brandon Hart (FMAAT), Accounts Manager Find out more >

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