Super deduction and property investors

In an unexpected offer of generosity as part of the spring Budget temporary ‘super’ capital allowances were given royal assent on 10 June 2021 with a view to kick start the post Covid-19 recovery.

There are two temporary first year allowances (FYAs) for new capital expenditure incurred from 1 April 2021 to 31 March 2023 for contracts entered into after 3 March 2021 namely:

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The allowances are claimable by corporate taxpayers and include non-resident landlords (who have to be corporates) but not individuals and partnerships. Note that the latter can still benefit from the standard rates of relief plus the annual investment allowance (AIA) which stands at £1m for expenditure on both main pool and special rate pool items until the end of December 2021 after which it drops back to £200 000.

The super deduction and...