Glossary · UK
What is Super-Deduction?
A temporary 130% first-year capital allowance for companies investing in new plant and machinery between April 2021 and March 2023.
Full Definition
The super-deduction was a temporary UK Corporation Tax relief allowing companies to claim a 130% first-year capital allowance on qualifying new plant and machinery bought between 1 April 2021 and 31 March 2023, plus a 50% first-year allowance for qualifying special rate assets. It was designed to bring forward business investment ahead of the planned Corporation Tax rate rise to 25%, and it has since been superseded by the permanent full expensing regime for main-rate assets.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.