Press Room

22 Feb 2023

Enhanced tax relief capital expenditure

On 31 March 2023 – i.e. in just over a month’s time – enhanced tax relief in the form of the fixed asset super-deduction and the 50% first year allowance on ‘special rate’ pool expenditure will end.

These were time-limited special measures introduced to encourage capital expenditure during the COVID-19 pandemic.  Since 1 April 2021, UK taxpayers carrying on a business and investing in qualifying new plant and machinery assets have been able to claim:

  • a 130% ‘super-deduction’ capital allowance on qualifying plant and machinery investments, or;
  • a 50% first-year allowance for qualifying special rate assets.

Taxpayers may continue to avail of the Annual Investment Allowance (“AIA”) – being a 100% tax deduction for qualifying fixed asset expenditure – following the end of the super-deduction on 31 March 2023.  However, this is less valuable than the super-deduction and AIA is capped to £1m of qualifying expenditure.  The super-deduction is not subject to any cap and gives relief at 130% of capital expenditure.

This is while UK industry bodies including the CBI and the Institute of Directors are calling on Chancellor Jeremy Hunt to legislate to make the super-deduction permanent as part of his Spring Budget on 15 March 2023.  Until such time as legislation is passed, the time to act is now.

It is not yet too late to take advantage of these enhanced reliefs and businesses currently considering significant capex spend may benefit from bringing forward this expenditure.

For further detail of how these reliefs work and how your business could benefit, please contact Huw Griffiths in our Corporate Tax team on 07496 410124.

Huw Griffiths
Corporate Tax Director
M: +44 (0)7496 410 124 or

Andersen LLP, 80 Coleman Street, London, EC2R 5BJ

Tel: +44 (0)20 7242 5000
Fax: +44 (0)20 7282 4337  |

The content of this newsletter and any subsequent updates we send do not constitute tax or legal advice and should not be acted upon as such. Specific tax and / or legal advice should be taken before acting on any of the topics covered.

Andersen Global is an international association of legally separate, independent member firms comprised of tax and legal professionals around the world. Established in 2013 by U.S. member firm Andersen Tax LLC, Andersen Global now has more than 4,500 professionals worldwide and a presence in over 149 locations through its member firms and collaborating firms.


Manage your email preferences   |    Unsubscribe.