Capital allowances and the super deduction - ‘go green’ with tax relief - t-mac

Capital allowances and the super deduction - ‘go green’ with tax relief

Due to Covid-19, already low levels of business investment have continued to decrease. But the recent spring Budget has revealed plans that aim to deliver some unexpected boosts to UK companies. The ‘super-deduction’ will last for the next two years. Aimed at encouraging businesses to make qualifying investments to help kickstart the economy post-covid. Whilst also taking advantage of enhanced tax reliefs.

So, how does the super-deduction work and who is eligible?


As part of the 2021 Budget, UK Chancellor Rishi Sunak announced a new capital allowance, super-deduction. Effectively, the super-deduction will reduce the cost of qualifying assets by 25% for the next two years. Allowing businesses to get a running start post-covid, while also investing in a healthy economic future for the UK.

The super-deduction enables companies to claim capital allowances for 130% of their expenditure. This is available on new plant and machinery fixed assets. Companies with expenditure incurred between 1 April 2021 and 31 March 2023 can claim first year relief of 50%.

Tax incentives such as the super-deduction allow businesses to generate valuable savings whilst also leading changes that significantly reduce harmful emissions. As we edge closer to net zero, businesses are constantly trying to find ways of becoming more environmentally friendly while also continuing to create a steady revenue.


New plant and machinery fixed assets are eligible for first year relief. This includes:

  • IT and office equipment
  • Solar panels
  • Energy efficient lighting
  • Warehouse machinery
  • Automation
  • Industrial equipment
  • Data centres

Exclusions to assets eligible include second-hand goods and contracts entered into before 3 March 2021, even if expenditure is incurred after 1 April 2021. Equipment purchased by property landlords for incorporated rental properties will also be excluded. For example, air conditioning units or heat pumps. Super-deduction is only available for companies. Sole traders and professional partnerships are unable to claim back relief.


By allowing companies to invest in energy efficient equipment whilst also receiving a substantial tax relief, the super-deduction is championing a sustainable future. Understanding your consumption is the first step in becoming energy efficient. And while renewable power sources are vital in becoming sustainable, so are implementations of energy saving solutions.

Our next-generation IoT-enabled metering, monitoring and control solutions help clients manage their assets and consumption via a single platform. Helping them to save energy, cost and carbon.

t-mac are proud to have products listed on The Energy Technology List (ETL), a government list of energy saving products used by businesses. Investing in ETL products allows businesses to lower costs while also becoming more environmentally conscious.

Get in touch today to hear more about t-mac’s energy saving solutions and efficiency management.

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