Super-deduction

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Super-deduction by Mind Map: Super-deduction

1. Relief

1.1. AP ends before 1 April 2023

1.1.1. 130% FYA

1.2. AP ends after 1 April 2023

1.2.1. FYA between 100% and 130%

2. Special rules

2.1. Hire purchase

2.1.1. Additional conditions

2.1.1.1. In-Depth

2.2. Shipping

2.3. Anti-avoidance

3. Conditions

3.1. Expenditure incurred in relevant period

3.1.1. Begins: 1 April 2021

3.1.1.1. Contract entered into before 3 March 2021: incurred on date contract entered into

3.1.2. Ends: 31 March 2023

3.2. Expenditure incurred by company

3.2.1. Not sole trader/partnership

3.3. Expenditure incurred on P&M

3.3.1. Not used / second-hand

3.4. Not special-rate expenditure

3.4.1. Separate SR allowance (50% FYA)

3.4.1.1. See In-Depth

3.5. Not excluded by CAA 2001, s. 46

3.5.1. Main exclusions

3.5.1.1. Activity discontinued

3.5.1.2. Cars

3.5.1.3. Used for leasing

3.5.1.3.1. Except for excluded lease of background P&M

3.6. Asset not for use in ring-fence trade

3.6.1. Separate 100% temporary FYA

3.6.1.1. See In-Depth

4. Disposal

4.1. Balancing charge

4.1.1. AP ends before 1 April 2023

4.1.1.1. Proceeds x 1.3

4.1.2. AP spans 1 April 2023

4.1.2.1. Proceeds x 'relevant factor'

4.1.2.1.1. Between 1 & 1.3

4.1.3. AP begins after 1 Apri 2023

4.1.3.1. Proceeds

5. Background & further information

5.1. In-Depth commentary

5.2. Announced at Budget 2021

5.2.1. Policy paper (gov.uk)

5.3. Legislated for by FA 2021, s. 9

5.3.1. Explanatory notes

5.4. HMRC factsheet (gov.uk)

6. Prepared by Croner-i. Links are to the Croner-i library unless stated otherwise.