| Important — Availability of the Super Deduction |
| ⚠ Important: The 130% Super Deduction First Year Allowance (FYA) was a temporary relief available for qualifying plant and machinery expenditure incurred between 1 April 2021 and 31 March 2023. It is no longer available for expenditure incurred after 31 March 2023. This article applies to accounting periods that fall within the eligible date range only. |
| Overview |
The Super Deduction allowed companies to claim 130% of qualifying expenditure on new plant and machinery as a First Year Allowance, rather than the standard 18% Writing Down Allowance. In BTCSoftware, the Super Deduction is claimed through the Capital Allowances calculator.
| How to Claim the Super Deduction |
- Open the Corporation Tax return in BTCSoftware.
- Click the Capital Allowances button in the top-left corner of the screen to open the Capital Allowances calculator.
- Select the Main Pool.
- Click Edit and add a new asset by clicking New Asset or Add.
- Tick the Asset Addition tick box.
- Enter the date of the asset addition — this must fall within 1 April 2021 to 31 March 2023 to be eligible for the Super Deduction.
- Enter the addition value (the cost of the asset).
- From the Eligible for FYA dropdown, select the relevant item that corresponds to your asset type.
- BTCSoftware will check the date of addition and the FYA selection against HMRC's eligibility criteria. If both are met, the percentage will change from 100% to 130%, indicating the Super Deduction is being applied.
- Save the capital allowances entry.
| ⚠ Important: Not all items in the Eligible for FYA dropdown qualify for the Super Deduction. Second-hand assets, cars, and assets used for leasing do not qualify. If the percentage does not change to 130% after selecting an FYA category, the asset may not be eligible under the HMRC rules for that selection. |
| Frequently Asked Questions |
Q: The percentage is still showing as 100% after selecting an FYA category — why?
A: Check that the date of addition falls within 1 April 2021 to 31 March 2023. Also check that the asset category selected in the FYA dropdown is eligible for the Super Deduction — not all categories qualify.
Q: Can I claim the Super Deduction on a used asset?
A: No. The Super Deduction only applies to new (unused) plant and machinery. Second-hand assets are not eligible.