25 May 2021The government has tabled amendments to the capital allowances super-deduction in Finance Bill 2021. Chancellor Rishi Sunak used the 2021 Budget to announce temporary capital allowances. These provide an increased incentive to invest in plant and machinery. The new super-deduction allows companies investing in qualifying new plant and machinery to benefit from new first-year capital allowances. Under the measure, a company will be allowed to claim a super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances, and a first-year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances. This relief is available between 1 April 2021 and 31 March 2023 and is not available for unincorporated businesses. The recent amendments to Finance Bill 2021 permit landlord lessors to claim the super-deduction. Landlord lessors were initially excluded from claiming the deduction.