Super Deduction

Inland Revenue Reduces Tax Bills on Capital Equipment

THE INLAND REVENUE SALE CONTINUES

Is it a bird?
Is it a plane?
No, it’s …… Super-Deduction ?

Until March 31 2021, if a limited company bought equipment, it reduced the tax bill by 19%.

From April 1 2021 it’s now called ‘Super – Deduction’ and enhanced by 30% to 24.7 % for anything bought up until March 31 2023 ?

More generosity from our Charitable Chancellor ?

Capital Equipment includes –

  • Plant
  • Machinery
  • Tooling
  • Computer Equipment
  • Furniture
  • Software
  • Commercial Vehicles (vans/lorries etc.)

Spend £100,000 and save £24,700 in tax instead of £19,000!

But here’s a health warning ⚠️

When you sell that equipment there’s a tax bill.

After 1 April 2023 that tax bill increases substantially.

So plan this carefully with a proper accountant/tax professional, so there’s no nasty surprises in a couple of years.

Are you going to experience a super deduction?

Will it make you more attractive to men/women/both when you talk about your new enhanced equipment?

Do you like saving tax?

You can find out more about the super-deduction on the Government website, or give us a call if you would like to get sone advice on how this impacts your business and your future tax bills.

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