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Capital Allowances - The new ‘Super-deduction’

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Nico Fell

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Capital Allowances - The new ‘Super-deduction’

Metalworking

A new 130% first-year capital allowance for qualifying plant and machinery assets; and a 50% first-year allowance for qualifying special rate assets.

From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:

  • a 130% super-deduction capital allowance on qualifying plant and machinery investments
  • a 50% first-year allowance for qualifying special rate assets
  • ‘No foal no fee’ if a worthwhile claim is not possible on your property no fee is charged.
  • No upfront charges such as a separate survey fee.
  • Our team are professionally qualified capital allowances specialists.
  • We undertake any required negotiations with HMRC.
  • 100% success rate in submitting claims to HMRC & The Revenue.
  • We maintain Professional Indemnity Insurance to the value of £1m per claim.

The 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.

How much tax relief can we get?

The super deduction gives relief at 130% of the qualifying cost compared to the usual 18% writing down allowance for investment in main pool plant and machinery assets.

The SR allowance gives relief at 50% of the qualifying cost in the first year with the balance going into the normal special rate pool to be written down at the usual 6% rate in future years.

Why you should call Momentum

  • ‘No foal no fee’ if a worthwhile claim is not possible on your property no fee is charged.
  • No upfront charges such as a separate survey fee.
  • Our team are professionally qualified capital allowances specialists.
  • We undertake any required negotiations with HMRC.
  • 100% success rate in submitting claims to HMRC & The Revenue.
  • We maintain Professional Indemnity Insurance to the value of £1m per claim.

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