The UK Government announced a new capital allowances
relief. From 1 April 2021 until 31 March 2023, companies investing in
qualifying new plant and machinery assets will be able to claim:
- 130% super-deduction capital allowance on qualifying
plant and machinery investments
- 50% first-year allowance for qualifying special
rate assets
This super-deduction is designed to promote companies to
invest in productivity enhancing plant and machinery. It is important businesses understand and take advantage of these generous new reliefs while
they are available.
The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring the UK capital allowances
regime is amongst the world’s most competitive. There is no upper limit set for the expenditure, so as long
the expenditure is incurred between 1 April 2021 – 31 March 2023. The enhanced
relief also does not allow for plant and machinery that will be made available
for leasing (including landlord fixtures within rented property) and excludes
cars.
The pandemic has been a big blow for a lot of businesses,
if you have been looking at equipment to help you grow, now may be the time to
use this relief. If you are not sure on whether it is the right time to make a
purchase, or if the equipment qualifies for the super-deduction relief, message
us on nicola@crossaccountingservice.co.uk or if
you would prefer to chat, call Cardiff: 02920 653 995 or Bridgend: 01656 530
063. Our team is always happy to help.
