Whether you are a Sole Trader, Partnership or Limited Company, you are eligible to receive 130% Capital Allowance as a tax-deductible expense on qualifying machinery purchased from April 1st 2021 to March 31st 2023.
As an extension of the already existing Annual Investment Allowance (AIA) that has been inflated to £1 Million, the Super-Deduction Capital Allowance is another significant tax-saving initiative to recently launch in the UK.
This comes as wonderful news for businesses within Agriculture, Construction, Haulage and the Engineering and Manufacturing sectors as it provides a financially viable route to invest in business productivity, quality of work and expansion.
Created to promote economic growth and activity, the government are hoping that it provides a strong incentive for companies to make additional investments, and to bring planned investments forward.
Eligible Plant & Machinery Include:
• Computer equipment and servers
• Solar Panels
• Tractors, lorries, vans
• Ladders, drills, cranes
• Office chairs and desks,
• Electric vehicle charge points
• Refrigeration units
• Foundry equipment
Businesses will be able to deduct the full value of qualifying assets from profits before tax. Overall tax liability is reduced as the full tax relief is received in the year assets are purchased rather than over several years.
If you would like to speak to our experts to discuss the Super-Deduction further, please call our office on 01603 735500. Alternatively, email firstname.lastname@example.org.
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