Super Deduction Allowance – A Power for Good
The new Super Deduction Allowance comes into effect on 1st April 2021. It is designed to encourage limited companies to invest in qualifying new equipment which could be office equipment including computers and servers, scanning or diagnostic equipment, plant and machinery to name but a few different asset types.
This government incentive enables your company to buy new or replacement kit to help your business move forward, whilst offsetting this cost against the profit on your next corporation tax bill to the value of 130% as opposed to the normal 100% Annual Investment Allowance.
You can claim the Super Deduction Allowance by either purchasing the equipment outright or by using a Hire Purchase agreement which we can source for you on competitive terms. Our Hire Purchase agreements will provide you with an additional line of credit which will not affect your current borrowing capabilities and will leave your existing sources of finance conveniently undisturbed.
What further projects will this enable you to consider? Let us know & Lease UK can provide an indication of the expected tax saving and how you can spread that cost with our competitive Hire Purchase packages. In practical terms the new scheme means that if your company were to buy equipment to the value of £50,000 you can claim enhanced first-year allowances of £65,000 as opposed to the current £50,000. At a Corporation Tax rate of 19% this means that this investment will harness tax savings of £12,350 as opposed to £9,500 currently.
Please contact us on 01372 466955 to get the ball rolling. Is this a serious opportunity that your business should be looking at?
For further information from HM Treasury use link attached: Super Deduction Factsheet