PART 1Income tax, corporation tax and capital gains tax

Capital allowances: super-deductions etc

11Reduced super-deduction

(1)

Subsection (2) applies where a person incurs super-deduction expenditure in a chargeable period (“the relevant period”) that ends on or after 1 April 2023.

(2)

Where this subsection applies, section 9(1)(b) applies as if for “130%” there were substituted the relevant percentage.

(3)

Subsection (4) applies where a person becomes entitled in a chargeable period (“the relevant period”) that ends on or after 1 April 2023 to a super-deduction as a result of section 236(2) in respect of an additional VAT liability that is regarded (as a result of that section) as super-deduction expenditure.

(4)

Where this subsection applies, section 9(1)(b) applies as if for “130%” there were substituted—

(a)

where the person becomes entitled to the super-deduction before 1 April 2023, the relevant percentage, or

(b)

otherwise, “100%”.

(5)

For the purposes of subsections (2) and (4)(a), the relevant percentage is X% where X is determined by—

(a)

dividing the number of days in the relevant period before 1 April 2023 by the total number of days in that period,

(b)

multiplying that amount by 30, and

(c)

adding 100 to the result.