Tax allowances for business investment

Making the most of your investment

The current high level of annual investment allowance for plant and machinery means that for many businesses there is no immediate difference between capital and revenue expenditure. For companies, the situation might be even better than this because of the introduction of a 130% super-deduction for the two-year period from 1 April 2021 to 31 March 2023. However, where such reliefs are not available, it is important that you benefit from any other available tax relief for capital expenditure.

Many types of capital expenditure qualify for capital allowances, but make sure you keep up with any changes to the rules because they are often updated.

As well as the introduction of the super-deduction, recent changes include the extension of the Åí1,000,000 plant and machinery annual investment allowance (AIA) limit for a further year to 31 December 2021, and the curtailment of allowances for cars.