Capital Allowances:

If your company or group of companies are likely to acquire plant and machinery in the next few years please read on for important information regarding the forthcoming changes to the Capital Allowances Regime.

The Government have been very generous when it comes to providing capital allowances on Plant and Equipment over the last few years.  We have benefitted from a temporary uplift in the amount available for 100% allowances (£1m) and some companies will have also benefitted from the 130% enhanced capital allowances regime recently.

The Government has confirmed that the temporary increase in the amount eligible for 100% capital allowances is going to become a permanent increase so Companies can continue to count on 100% tax relief for their qualifying additions up to £1m a year.  Note: the £1m allowance is still to be shared between group companies.

Unfortunately, from 31 March 2023 the super deduction (130% tax relief) is no longer available.


  • If you are planning expenditure on plant and equipment it may be worth bringing forward the acquisition, if possible, to before 1 April 2023, if this is for brand new equipment and not for a leasing business.
  • If you plan to order something substantial before 31 March 2023 speak to one of our advisers to make sure you do what you can to gain the maximum tax relief (there are complex rules regarding capital allowances when the legal title has not passed prior to 31 March 2023).

If you would like to speak to someone about these changes please let us know.