With businesses slowly coming to terms with the pandemic, my client is considering increasing their capital expenditure and benefitting from the additional super-deduction. What are the key points to remember when claiming this additional relief?

In the Spring Budget, two temporary first year allowances were given Royal Assent on 10 June 2021 with a view to kick starting the post Covid-19 recovery.

These were either a super-deduction in the form of a 130% relief for main plant and machinery pool expenditure. This is referred to as super-deduction expenditure. Or for special rate items where a 50% first year allowance is temporarily introduced.