Claim super-deduction and deal with asset disposals where super-deduction has been claimed in Corporation Tax

Super-deduction

Alternative method using version 22.0 or 23.0 — add super-deduction and special rate first-year allowance manually

Sign in as an administrator.
Go to
Tools
,
Manager
, then 
Computation Parameters
.
Select the
CA Rates
tab.
For Special Rate Assets:
In the row beneath the current details, enter
01/04/2021
as the
Start Date
.
note
Corporation Tax changes the
End date
on the row before and enters
ongoing
into the row you're editing.
For the
End date
, replace
ongoing
with
31/03/23
.
note
This is the last date on which expenditure will qualify for the relief.
Enter
50
in the
FYA %
column.
note
Corporation Tax adds the other rates.
For General Pool:
In the row beneath the current details, enter
01/04/2021
as the
Start Date
.
note
When you enter a
Start Date
in a new row, Corporation Tax updates the
End Date
on the row above and enters
ongoing
as the
End Date
of your new row.
For the
End date
, replace
ongoing
with
31/03/23
.
Enter
130
in the
FYA %
column.

Select
OK.
When you enter an item in the General Pool or Special Rate Pool with a date from 1 April 2021 to 31 March 2023, mark the
FYA
checkbox to apply the new rates.
important
If you the mark
FYA
checkbox, don't also complete the
AIA
box.
When you enter items in the Special Rate Pool with the
FYA
checkbox marked, Corporation Tax does not automatically complete the
Qualifying Additions
tab in the
Fixed Assets Reconciliation Summary
.
If you entered an item in the Special Rate Pool with the
FYA
checkbox marked:
Go to
Accounts
, then
Fixed Assets Reconciliation Summary
.
Select
Details
.
Select the
Qualifying Additions
tab.
In the
Special Rate Pool
row, replace the
Auto
item with the correct amount.
important
Corporation Tax completes boxes
705 (allowances)
and
760 (Machinery and plant on which FYA is claimed)
, but you'll need to manually adjust the boxes on the CT600. How you do this depends on your version of Corporation Tax.
To manually adjust boxes if you use Corporation Tax versions 22.0 or 23.0:
Right-click box
705
and select
Enable Editing
from the context menu.
Change the amount to remove the part that relates to the super-deduction.
tip
If you need to remove all the allowance amounts in this box, you can press
Space bar
to clear entire box.
Select box
691 (Machinery and Plant - super-deduction)
and enter the amount.
To complete the boxes for the special rate allowance:
Right-click box
695
and select
Enable Editing
.
Change the amount to remove the part that relates to the super-deduction.
Select box
693 (Machinery and Plant - special rate allowance)
and enter the amount.
For the expenditure:
Right-click box
760
and select
Enable Editing
.
Change the amount to remove the part that relates to the super-deduction.
Manually add the amounts to box
772 (Machinery and Plant - super-deduction)
and box
773 (Machinery and Plant - special rate allowance)
as needed.
note
These steps cover the most common scenario where capital allowances affect the trading profits calculation, but you can use the same process for capital allowances that affect non-trading profits and if there are balancing charges. The boxes are:
Super-deduction allowances:
691 (trade)
and
741 (non-trade)
.
Special-rate allowances:
691 (trade)
and
743 (non-trade)
.
Super-deduction balancing charges:
692 (trade)
and
742 (non-trade)
.
Special-rate balancing charges:
700 (trade)
and
744 (non-trade)
.
Qualifying Expenditure:
773 (super-deduction)
and
773 (special rate allowance)
.

Enter disposals of assets where super-deduction was claimed

Manually calculate the balancing charge for the asset.
note
For details, refer to HMRC Guidance: Disposing of a super-deduction or special rate first year allowance asset to work out the balancing charge.
Create a new user-defined pool for each disposal of this type:
Go to
Capital Allowances
.
Select
Assets
.
In the
Other Capital Allowances Claimed
folder, select
User-defined Assets
.
Select
New
.
Enter an
Asset Name
.
Select
Add Row
.
Enter the original
Addition Date
.
Enter 0 for the
Cost / B Fwd
.
Enter the
Disposal Date
.
Enter the
Proceeds
amount (this is the balancing charge for the asset you calculated earlier).
Select
Calculate Allowance
.
note
Corporation Tax will show the disposals in the computation under a separate section for
Other Assets
and the disposal and balancing charge amounts as the same figure. You may want to add a note to confirm these are super-deduction amounts and explain how you calculated the balancing charge. To add a note under the
Other Assets
section in computation:
Select the
User-defined Assets
folder.
Select
Notes
.
Enter a note heading and text. 
If the disposal is of an asset where the Special Rate First Year Allowance has been claimed at 50% or where the allowance was not claimed in full, you'll need to go to the Special Rate Pool (or General Pool) and dispose of the portion of the asset in that pool.
note
For example, a company boughty an asset for £100,000 in accounting period ending 31/12/21, where it claimed the Special Rate First Year Allowance at 50%. The company sold the asset for £50,000 in the following accounting period. You would need to enter £25,000 as a balancing charge in a user-defined pool, and £25,000 as a disposal in the Special Rate Pool.
These steps will complete box
730
on CT600, but you'll need to take the following steps to move the amount to the new boxes:
Right-click box
692 Super-Deduction
or
694 Special Rate Allowance
as needed, then select
Enable Editing
from the context menu.
Enter the balancing charge in one or both of these boxes, as needed.
Select box
730
and either press
Space bar
to remove the amount or, if there should be other items in the box, replace it with the correct amount.
note
If the capital allowances don't relate to a trade, Corporation Tax will complete box
755
on the CT600, and you'll need to take the following steps:
Right-click
742 Super-Deduction
or
744 Special Rate Allowance
, then select
Enable Editing
from the context menu to enter the amount there.
Select box
755
and either remove the amount or, if there should be other items in the box, replace it with the correct amount.

Add a note if you applied the alternative method in version 21.2 or earlier

Go to the
Capital Allowance Explorer
.
Select the pool folder.
Select
Notes
.
Enter your note, then select
OK
.
Select
Close
, then
OK
.