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If you're a company, find out if you can claim the super-deduction or special rate first year (SR) allowance on plant or machinery costs.

Super-deduction and special rate first year capital allowances are temporary allowances you can claim on the cost of qualifying plant and machinery.

Special rate first year allowance is also known as SR allowance.

You can only claim these allowances if you are a company. Check what allowances you can claim as a sole trader or trust.

You can claim these allowances if all of the following apply:

Plant and machinery are tools of the trade, kept permanently for the use of the business. What counts as plant and machinery will depend on the nature of your business.

Find out more about what counts as plant and machinery.

To make a claim for super-deduction or special rate first year allowances, the plant and machinery must:

You cannot claim super-deduction for plant and machinery used wholly or partly within a ring fence trade.

Find out more about capital allowances you can claim for a ring fence trade.

If you’re a property lessor, you may be able to claim for background plant or machinery in leased buildings. These assets are installed in various types of buildings to make them usable and include (but are not limited to):

You cannot normally claim for plant and machinery within homes you let out.

You can only claim for capital expenditure incurred on your hire purchase agreement.

You can normally make a claim if you:

If the asset has not been brought into use for the business (but is still expected to be), you can normally claim allowances on the capital element of the instalments you have incurred.

When you bring the asset into use, you can normally claim allowances on the capital element of all future instalments straight away.

You can only claim super-deduction for main rate plant and machinery.

Main rate plant and machinery is plant and machinery that is not special rate. Find out more about rates of capital allowances.

Plant and machinery that may qualify for the super-deduction includes (but is not limited to):

Integral features do not qualify for the super-deduction but may qualify for the special rate first year allowance.

You can only claim special rate first year allowance for special rate plant and machinery. Find out more about rates of capital allowances.

Plant and machinery that may qualify for the special rate first year allowance includes (but is not limited to):

You should check how much you can claim before submitting your tax return.

Don’t include personal or financial information like your National Insurance number or credit card details.

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