Super-deduction calculator UK

From 1 April 2021 to 31 March 2023, companies can claim 130% capital allowances on plant and machinery investments that would usually qualify for 18% tax relief. For example, a company investing £100,000 could claim a deduction of £130,000 against taxable profits, saving up to 19% of that – or £24,700 on its corporation tax bill

This is a special rate first year allowance (FYA) for plant and machinery which covers new plant and machinery that would usually qualify for the special rate of 6% tax relief, including integral features in a building and long life assets.

The annual investment allowance (AIA) lets a business deduct 100% of the cost of qualifying plant and machinery assets from their taxable profit, in the tax year of purchase. It means a business can save £1 in taxable profits for every £1 spent, up to a maximum of £1m per tax year.