Capital Expenditure Tax Breaks

Here is a summary of the main tax breaks for capital expenditure that are currently available: -

• 130% relief for investment by limited companies in new plant and machinery that would normally be dealt with in the general pool
• 100% relief for investment in new and used plant and machinery by all businesses but limited to the first £1 million
• 50% relief for investment by limited companies in new plant and machinery that would normally be dealt with in the special rate pool (typically fixtures in buildings and long-life assets)
• 18% writing down allowance for plant and machinery in the general pool
• 6% writing down allowance for plant and machinery in the special rate pool
• 3% straight line write off for expenditure on the construction or refurbishment of commercial buildings.

Some of these generous tax breaks may continue beyond 31 March 2023. We await further announcements – probably in the Autumn Budget. Please talk to us about capital spending and planning ahead of the Budget.