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Finances

Capital allowances – fact sheet

Is your business taking full advantage of the super-deduction capital allowances announced in the Spring Budget 2021?

And the enhanced special rate is a 50% first-year allowance for assets including integral features in buildings, such as electrical, water and heating systems.

These are in addition to the existing Annual Investment Allowance (AIA) which permits 100% relief for up to £1m of expenditure incurred each year on qualifying plant and machinery assets, until 31 March 2023.

According to Deloitte’s CFO Survey, 2022 will be a year of rising business investment. The Big Four firm says a record 37% of CFOs cite increasing capital investment as a strong priority for their business in the next 12 months, with CFOs rating growth at home and abroad and the climate transition as the main drivers of investment. 

Gurj Sandhu, Partner, National Head of Capital Allowances with UK accountancy firm Azets, says: “Business owners should look carefully at the timing of planned investment in new assets to take full advantage of the enhanced allowances. Up to 31 March 2023, the additional tax savings through super allowances will be most beneficial to companies that have already absorbed the 100% relief available through the AIA.”

Download the factsheet

Capital allowances factsheet (PDF, 768KB)

This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of the NatWest Group Economics Department, as of this date and are subject to change without notice.

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