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Commercial property landlords to benefit from Super Deduction

An amendment has been made to the 2021 Finance Bill in relation to the new Super Deduction for plant and machinery announced in the March Budget.  This enables companies to obtain tax relief on 130% of the cost of new plant and machinery purchased between April 2021 and March 2023.

The rules as originally drafted include an exclusion for leased assets, and it was previously understood that this would exclude property landlords from claiming, because the assets would be part of a property that was let out.

The amendment clarifies that commercial property landlords can indeed claim the super deduction, by ensuring that exclusion does not apply to property letting.  The exclusion only applies to equipment which is hired out (i.e. plant and vehicle hire businesses).

However the relief does still only remain available to limited companies, and not to unincorporated letting businesses.

Please contact the Tax team if this may be relevant to you and you would like to discuss further – either call 01242 766000 or email tax@randall-payne.co.uk