The Lemon Fool

I am interested in the Super Deduction capital allowances announced in the Budget yesterday, but have yet to find anything giving details of what investments will qualify. Is anyone in the know or can anyone point me at a reasonable source. Or do we have to wait for the Finance Bill to be published?

Thanks in advance.

The 130% applies to plant and machinery that would normally have received the 18% WDA re capital allowances or at 50% re that which would normally have received 6%, this is the draft legislation but you need to read it with Part 2 Capital Allowances Act 2001 (CAA 2001) open at the same time- I am waiting for PWC/similar to write a handy commentary.

https://assets.publishing.service.gov.u ... uction.pdf

https://www.gov.uk/government/publicati ... april-2021

We are planning to open up a new premises in the next few month but I am unsure of the tax treatment of the various expenditure. We will be spending about £50k refitting a shop premises. How is this treated for tax and accounting purposes by HMRC? Will we get any of the super deductions?

John

redsturgeon wrote:We are planning to open up a new premises in the next few month but I am unsure of the tax treatment of the various expenditure. We will be spending about £50k refitting a shop premises. How is this treated for tax and accounting purposes by HMRC? Will we get any of the super deductions?

John

You first need to split the works into that which is an integral feature and that which is distinct piece of plant and machinery and that which is neither, there is a decent chance a lot will be neither. So a freedstanding heater or cash register is likely plant, the heating system installed within the building is likely an integral feature, the studboard partition is probably neither.

The enhanced 130%/50% does depend which of the two categories items fall within.

This is helpful re integral features:

https://www.rossmartin.co.uk/capital-al ... al-feature

I will caveat that I did little re such allowances when in practice so you likely want an up to speed accountant to walk you through.