Guidance

Work out what you can claim for super-deduction or special rate first year allowances

Find out how much you can claim for super-deduction or special rate first year (SR) allowances and how to claim.

• From: HM Revenue & Customs
• Published: 27 May 2022
• Last updated: 1 June 2022 — See all updates

Before you make a claim, you should check if you are eligible.

Check how much you can claim for the special rate first year allowance

The rate of special rate first year allowance is 50%.

Special rate plant and machinery do not qualify for the super-deduction but may qualify for the 100% annual investment allowance.

If you can only claim the 50% special rate first year allowance, you can add the balance of the expenditure to your special rate pool in the following accounting period to claim writing down allowances.

Find out about pools and other capital allowance rates.

Check how much you can claim for the super-deduction

If your accounting period ends before 1 April 2023, the rate of super-deduction is 130%.

If your accounting period ends on or after 1 April 2023, you need to follow these steps to work out what you can claim:

1. Count the number of days in the accounting period before 1 April 2023.

2. Divide that number by the total number of days in the accounting period.

3. Multiply this result by 30.

4. Add 100 to this result to get the ‘relevant percentage’.

5. Multiply your qualifying super-deduction expenditure by the ‘relevant percentage’.

Find an example of working out the ‘relevant percentage’.

Find out about pools and other capital allowance rates.

Make a claim

You can claim for super-deduction or special rate first year allowances on your Company Tax Return.

You should check what records to keep for capital allowances.

Published 27 May 2022
Last updated 1 June 2022 + show all updates

1. 1 June 2022

   Information about an example of working out the ‘relevant percentage' has been added.

2. 27 May 2022

   First published.