CKLG BLOG

Chancellor committed to encouraging capex spending 

22.06.2022

Business

Chancellor committed to encouraging CAPEX spending 

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

• 130% relief for investment by limited companies on new plant and machinery that would normally be dealt with in the general pool (Super-Deductions) 

• 100% relief for investment in new and used plant and machinery by all businesses but limited to the first £1 million (Annual Investment Allowance) 

• 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. 

With Corporation Tax rates increasing from April 2023, should you delay your CAPEX spending until after then? 

Please get in touch to discuss your proposed CAPEX to make sure the timing is right to maximise your savings.