The super-deduction allowance, which is the most attractive tax incentive for business investment is coming to an end.
It has been short lived as it came into effect from 1 April 2021 and will end on 31 March 2023.
What this means exactly: If you want to take advantage of claiming back up to 25p for every pound you invest in ‘qualifying’ new machinery and equipment, then you need to invest no later than 31 March 2023. After this date, the relief falls back to the standard 19p for every pound you invest. Note this is only for businesses who are Limited Companies.
Examples of what is ‘qualifying’ machinery and equipment: - Computers, printers - Office equipment, e.g., desks, chairs - Vehicles such as vans, lorries, tractors (but not cars) - Warehousing equipment, e.g., forklift trucks, pallet trucks - Tools, e.g., ladders, drills
Any qualifying asset must be NEW – this allowance does not apply to second-hand investments.
If you would like some more information or to discuss your potential investment, please do not hesitate to contact the office and speak to any of our Advisors on 01995 600600.