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Finance Act 2021

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Change 1

What to do with it
As published

11 Reduced 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.

Your change, as a redline

11 Reduced 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.

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