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Super deduction and property investors

22 June 2021 / Nolan Masters
Issue: 4797 / Categories: Comment & Analysis
51615
Property fit-out bonanza

Key points

  • The super deduction and special rate allowances must be claimed in the year of expenditure.
  • All fixtures do not qualify for the same rates of allowance.
  • Construction costs will need to be fully assessed to claim at the correct rates of relief.
  • Bear in mind the corporation tax rate increase from April 2023.

In an unexpected offer of generosity as part of the spring Budget temporary ‘super’ capital allowances were given royal assent on 10 June 2021 with a view to kick start the post Covid-19 recovery.

There are two temporary first year allowances (FYAs) for new capital expenditure incurred from 1 April 2021 to 31 March 2023 for contracts entered into after 3 March 2021 namely:

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The allowances are claimable by corporate taxpayers and include non-resident landlords (who have to be corporates) but not...

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