Super-deduction - super savings
Use our super-deduction calculator to find out how much you can save
Potential Corporation Tax (19%) saving:
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Super-deduction capital allowance – super tax savings on assets for 2021
A new Super-deduction capital allowance was announced in the March 2021 Spring Budget
Buying new assets with Super-deduction capital allowance
All new plant and machinery purchases (including commercial vehicles) will qualify and will allow you to offset 130% of the asset value against your taxable profit in the year you invest.
Use our calculator above to see what tax savings you could make on new equipment purchases.
This is a real incentive for you to commit to new investments and benefit from significant tax savings.
This scheme will run from Thursday 1st April 2021 for two years. There is no limit on purchases, and it applies to hire purchase, loan and cash transactions.
Buying used assets with Annual Investment Allowances
Also included in the Budget is a £1m AIA limit that businesses can utilise for used assets. This was originally due to expire at the end of December 2021 but has been extended until 31st March 2023 to run concurrently with the Super- deduction scheme.
With used asset purchases, 100% can be offset against taxable profit, which on £100,000 equates to a tax saving of £19,000.
PMD Business Finance is on hand to talk through any of these allowances and how it can help your business’s growth plans over the next two years.
Get in touch with our experts today.
*The calculator is for illustrative purposes only and subject to your individual circumstances, which should be discussed with your accountants or advisors.