For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments.

The Treasury has just made it easier (financially) to invest in some renewable energy technologies, as well as certain other plant equipment.

It is aimed as a kick start for UK businesses, helping them in the recovery from the impact of Covid, and aiming to improve business investment. From 1st April 2021 until 31st March 2023, there is a new capital allowance offer including the following measures:

  • The super-deduction – which offers 130% first-year relief on qualifying main rate plant and machinery investments until 31 March 2023 for companies
  • The 50% first-year allowance (FYA) for special rate (including long life) assets until 31 March 2023 for companies
  • Annual Investment Allowance (AIA) providing 100% relief for plant and machinery investments up to its highest ever £1 million threshold, until 31 December 2021
  • Within Freeport tax sites, companies can access new Enhanced Capital Allowances (ECA+) and companies, individuals and partnerships can benefit from an increased level of Structures & Buildings Allowance (SBA+) for investments until 30 September 2026

To find out more details about the super deductions, read this HM Treasury Factsheet.

These capital allowances will, no doubt, be applied by your accountant at the year end, but BEEP thought it might be useful for you to know now, in case you are hesitating to make that investment.

If you need guidance on whether renewable energy is possible for your business, and want to know what options are available, please click here to book a fully funded energy audit with the BEEP Team.