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Time to maximise relief using the super deduction

16 May 2022 / Mak Okay-Ikenegbu
Issue: 4840 / Categories: Comment & Analysis
Super spender

Key points

  • The super deduction will end in March 2023.
  • Considerations need to be made in relation to disposal of the asset for which the super deduction has been claimed.
  • Might the government introduce 100% capital expenditure deduction from taxable profit?
  • It might be sensible to reinstate enhanced capital allowances.

The super deduction introduced in Finance Bill 2021 to amend part 2 of CAA 2001 provides two-year temporary first year allowances (FYA) for qualifying capital assets in the form of plant and machinery.

Given that this scheme is due to end in under a year’s time this article discusses the need to maximise the cash saving opportunities that the super deduction presents before the curtain is drawn. It also explores the measures that may be introduced in future to make capital allowances more lucrative to businesses.

What is the super deduction?

The super deduction is available...

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