Latest Budget updates (accurate at 7/11/23)
As the financial landscape shifts with each Budget announcement, we’ve gathered the key points that affect your Capital Allowances claims:
Annual Investment Allowance (AIA) Stability
The AIA remains at £1 million for qualifying expenditure incurred until 31 March 2023. This temporary cap provides significant tax relief for investments in plant and machinery.
Super-deduction and SR Allowance
For expenditures incurred from 1 April 2021 until 31 March 2023, companies can take advantage of the super-deduction, offering 130% first-year relief on qualifying main rate plant and machinery investments. Alongside, a 50% first-year allowance for qualifying special rate assets.
Green investment incentives
The government continues to bolster its commitment to sustainability, with Enhanced Capital Allowances (ECAs) for energy and water-efficient equipment remaining a focus, providing a 100% first-year allowance to support green investments.
Freeports tax sites
Commercial properties within designated Freeports may benefit from enhanced tax reliefs, including enhanced structures and buildings allowances, with certain qualifying investments eligible for 10% relief per annum over a 10-year period.
What these updates mean for you
With these changes, UK commercial property owners have opportunities to make significant savings. Whether you’re planning new purchases or considering upgrades to your existing property, the generous AIA cap and the super-deduction can make a substantial difference to your bottom line.