Time is running out to claim the super-deduction offering 130% first-year tax relief. The super-deduction was designed to help incorporated businesses finance expansion after the coronavirus pandemic and to help drive growth.
The super-deduction tax break was introduced on 1 April 2021 and allows businesses to deduct 130% of the cost of any qualifying investment on most new plant and equipment investments that would ordinarily qualify for 18% main rate Writing Down Allowances (WDAs). This means that for every £1 a business invests, they can reduce their tax bill by up to 25p. The temporary tax relief applies on qualifying capital asset investments until 31 March 2023.
In addition, an enhanced first year allowance of 50% on qualifying special rate assets also applies to expenditure within the same period. This includes most new plant and machinery investments that would ordinarily qualify for 6% special rate Writing Down Allowances.
The super-deduction can only be claimed by companies. This means that self-employed traders are unable to benefit. However, they could benefit from the Annual Investment Allowance (AIA) for investments of up to £1 million. The AIA allows for a 100% tax deduction on qualifying expenditure on plant and machinery. The temporary limit of £1 million will also remain in place until 31 March 2023 before reverting to the usual £200,000 limit.
How can we help?
We have vehicles that we can invoice and deliver to you before the March deadline helping you avail to the government’s scheme. If you have a requirement, please get in touch by calling our Antrim Sales Team on 028 9433 6539