As part of the 2021 Spring Budget, Rishi Sunak has announced a new 'super-deduction' capital allowance for qualifying plant and machinery assets.
From 1 Apr 2021 until 31 Mar 2023, businesses investing in 'main rate' assets between these dates will be able to claim a 130% deduction against their corporation tax bill - This could translate into a saving of up to 25p for every £1 invested.
To qualify, purchased assets will have to be brand new and funded either through cash or hire purchase - Leased assets will not be eligible.
Most business assets used in the course of general trading are considered plant and machinery for the purposes of claiming capital allowances. We've listed some typical examples below:
HCV's
LCV's
Trailers
Tractors
Cranes
Diggers
Excavators
Computer Hardware
Office Furniture
Machine Tools
Solar Panels
EV Charging Points
The new super-deduction is only available to businesses that pay corporation tax. Sole traders and partnerships are not included but can still take advantage of the AIA (Annual Investment Allowance) which continues to run at an increased limit of £1,000,000 until 31 Dec 2021. Click here for further details.
To further understand how the new super-deduction could work for your business, get in touch with the team at KeySME today - You can even watch Mr Sunak explain the new scheme here, enjoy!
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