Qualifying spend must be by a company investing in brand new plant and machinery assets between those dates.
Post 31 March 2023, as things currently stand, the ‘super-deduction’ will lapse and assuming Annual Investment Allowance remains, then a company investing £100,000 in qualifying plant and machinery will obtain tax relief at 100%, but with tax rates raising to 25%, then the company achieves tax relief of 25p for every £1 invested.
Therefore is it better to defer capital expenditure until after 31 March 2023, if indeed that is possible?
The answer will be it depends on many considerations including non-tax related decisions, but from just a tax perspective, will we still an annual investment allowance post 31 March 2023? Will the investing company be achieving taxable profits of greater than £250,000 post 31 March 2023?
The next step
Gambling on the future is always a risky area so if you have capital asset investment options then speak to your local UHY adviser.