In case you have not been reading the business pages, or indeed the front pages, there is quite a lot of angst about what the Chancellor may, or may not, do in his Spring Budget on 15th March. Depending on your political viewpoint, he’s either going to do nothing to help industry and commerce or he’s not going to do enough to increase tax from those who have made a lot of money in the last year from the rise in energy prices (other subjects to rant about are available). One thing that (currently) we do expect to change is the removal of the ’super-deduction’ that allows companies investing in qualifying new plant and machinery assets to claim:
The government says super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring the UK capital allowances regime is amongst the world’s most competitive.
This is all part of the support package launched during the Covid pandemic, but the fact that it will now stop (unless the Chancellor performs a U-turn), means that you only have a few weeks to make any claims.
The Super-deduction factsheet (PDF, 151 KB, 3 pages) has more information and you can also find out about technical guidance on the super-deduction and special rate allowance in chapter CA23161 of the HMRC Capital Allowances Manual.
If you are at all unsure about how to do this, please do contact us for advice. You can also get more information from the government website, at these links.
Ashley Marshall, M&S Accountancy and Taxation