The Super-Deduction Scheme was among the Government’s measures announced in the Budget to help businesses.
Aimed at organisations investing in plant and machinery, the scheme was the Government’s response to the significant falloff in investment that has taken place since the start of the pandemic.
From 1 April 2021 and until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:
The result is the super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest.
Businesses can also benefit from:
By no means an exhaustive list, commonly regarded as plant or machinery are:
A company incurring £1m of qualifying expenditure decides to claim the super-deduction. Spending £1m on qualifying investments will mean the company can deduct £1.3m (130% of the initial investment) in computing its taxable profits. Deducting £1.3m from taxable profits will save the company up to 19% of that – or £247,000 – on its corporation tax bill.
If you are planning to invest in plant or machinery and want more information or advice on how to take advantage of the Super-Deduction Scheme, please get in touch with the accountancy team at Optimum.
We help business owners in Swindon, Wiltshire, Cheltenham, Gloucestershire and the surrounding areas.