Second hand plant and machinery does not qualify for the 130% super-deduction but would still qualify for the 100% Annual Investment Allowance (AIA).
The amount of expenditure qualifying for 100% tax relief was originally scheduled to revert to just £200,000 from 1 January 2021 but will now continue at £1 million until 31 March 2023.
Although the 130% super-deduction only applies to limited companies the AIA is available to sole traders and partnerships as well.
Remember that there is currently a further 100% first year allowance for the cost of buying a new zero emission car for the business.
Previously 100% relief was available where the CO2 emissions of the car were no more than 50g per kilometre. However, that threshold changed in April 2021.
