The 130% capital allowances super-deduction ended on 31 March 2023. Most businesses can benefit from the £1 million Annual Investment Allowance (AIA) to secure tax relief on their qualifying plant and machinery expenditure, however, a new relief for limited companies in addition to AIA called Full Expensing has been announced which will replace the super deduction. This will allow companies to claim 100% of the cost of new and unused qualifying plant and machinery (not a car) from their profits before tax. Where qualifying expenditure is for assets within the special rate pool, a 50% First Year Allowance is available. This new relief is available from 1 April 2023 to 31 March 2026.

If you would like more information on this, please get in touch with your usual Drummond Laurie contact.