Post Super Deduction Regime

The 130% ‘super deduction’ Capital Allowances relief came to an end on 31 March 2023, which could affect the tax relief available on expenditures incurred by companies. There were also changes announced in the Spring Budget, with the introduction of 'full expensing' from 1 April 2023.

There are complex rules around the timing of capital expenditure and these, together with the transitional rules when the super-deduction ends, could have an impact on the availability of the full super-deduction rate of 130%. Where expenditure is in an accounting period that straddles the end of the qualifying period, ie 1 April 2023, the super-deduction rate will be time apportioned.

For companies with a March accounting year end, the super-deduction will be available in full on qualifying expenditure for the accounting year end to 31 March 2023.

However, where the accounting period ends after 1 April 2023, the available super-deduction will reduce to: