130% capital Allowance on Plant & Machinery
Super-Deduction - 130% capital Allowance on Plant & Machinery
If you are considering investing in new computer hardware or software then this is a good time to take advantage of the Super-Deduction capital allowance, announced by the Treasury last week. Businesses will be able to offset 130% of investment spending on plant and machinery against profits for the next two years, equating to a cut in a tax bill by up to 25p for every £1 invested.
From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:
a 130% super-deduction capital allowance on qualifying plant and machinery investments
a 50% first-year allowance for qualifying special rate assets
The scheme is hoped to encourage firms to invest in productivity-enhancing equipment to help then grow. If you are considering an equipment upgrade, call Richard who will be happy to advise you.
Contact Richard for more information
T: 0113 234 1548