What is a super deduction?
It allows companies to claim a 130% first year allowance (FYA) for investment incurred on qualifying plant and machinery acquired between 1 April 2021 and 31 March 2023.
Under the super deduction, for every pound a company invests, their taxes are cut by up to 25p.
The government announced the super deduction in the March 2021 Budget, in the hope that the scheme will encourage business investment and stimulate economic growth.
