Super-deduction: Gone but shouldn’t be forgotten

What can I claim 130% capital allowances on?

Plant and machinery

Items that are used for the purpose of the trade are referred to as plant and machinery when claiming capital allowances. What qualifies as plant and machinery is not defined in law and therefore can be overlooked if not reviewed by an expert.

Learn more about ‘What is classified as plant & machinery’

When reviewing expenditures, qualifying items are divided up into the main rate pool, in which super-deduction relief can be claimed, and the special rate pool, where the first-year allowance relief is claimed.

Can I claim after 31 March 2023?

When the end date arrives, don't switch off just yet!

Claiming beyond April 2023

It all depends on the timing of when the spend is:

Reviewed

Old expenditures can still be claimed after the deadline on the basis that any qualifying items were purchased from 1 April 2021 to 31 March 2023. Technically, super-deduction will continue to form part of capital allowance reviews up until 31 March 2025 due to the ability to amend & resubmit tax returns where super-deduction is available.

Incurred

Any expenditure incurred after 31 March 2023 will not qualify for this tax relief. Therefore, if there’s a possibility work on a project could be brought forward, this may benefit the business in making sure they qualify for this relief.

Unconditionally agreed

If work is unconditionally agreed on or before 31 March 2023 then you have 4 months after for the spend to still qualify. Proof of this will always need to be attained to ensure no problems will arise if HMRC ever raises an inquiry.