CA23162 - Plant and Machinery Allowance (PMA): First Year Allowance (FYA): Super-Deduction and Special Rate (SR) Allowance: Introduction

FA21/S9-14

The Finance Act 2021 introduced the following three new temporary first-year allowances:

• a 130% super-deduction for expenditure on the provision of main rate plant and machinery
• a 50% SR allowance for expenditure on the provision of special rate plant and machinery
• a 100% FYA for expenditure on the provision of plant and machinery partly for use in a ring-fence trade and partly for use in another qualifying activity – see CA23157.

The guidance on the following pages covers the super-deduction and SR allowance. It includes guidance on the conditions which must be met for a claim to the super-deduction or SR allowance, provisions which provide for a reduced super-deduction in certain circumstances and how to treat the disposal of plant and machinery on which the super-deduction or SR allowance has been claimed.