The Spring Budget 2021 provides temporary first-year allowances to drive an ‘investment-led’ recovery. Suzanne Alcock (EY) reviews the changes.
Two temporary first-year allowances for capital expenditure incurred on plant and machinery by companies between 1 April 2021 and 31 March 2023 were introduced in the Spring Budget 2021. This is an exciting development for companies as it is the first time that a super-deduction is available to encourage investment in capital assets.
The super-deduction is a 130% first-year allowance for qualifying expenditure on plant and machinery within the main pool which would otherwise attract a writing down allowance of 18% per annum on a reducing balance basis. The super-deduction is not available for special rate assets. Instead they will benefit from the special rate allowance (‘SR allowance’).
The SR allowance provides a first-year allowance of 50% for qualifying expenditure which would otherwise be relieved at a writing down allowance...
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The Spring Budget 2021 provides temporary first-year allowances to drive an ‘investment-led’ recovery. Suzanne Alcock (EY) reviews the changes.
Two temporary first-year allowances for capital expenditure incurred on plant and machinery by companies between 1 April 2021 and 31 March 2023 were introduced in the Spring Budget 2021. This is an exciting development for companies as it is the first time that a super-deduction is available to encourage investment in capital assets.
The super-deduction is a 130% first-year allowance for qualifying expenditure on plant and machinery within the main pool which would otherwise attract a writing down allowance of 18% per annum on a reducing balance basis. The super-deduction is not available for special rate assets. Instead they will benefit from the special rate allowance (‘SR allowance’).
The SR allowance provides a first-year allowance of 50% for qualifying expenditure which would otherwise be relieved at a writing down allowance...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")