Tags: deduction, equipment, new plant, scheme, super tax

In his 2021 Budget, Chancellor Rishi Sunak announced a new tax incentive aimed at encouraging businesses to invest in new equipment. This incentive, known as the Government Super Deduction, allows companies to claim a 130% tax deduction on qualifying capital investments made between April 1, 2021, and March 31, 2023.
 

What is the Government Super Deduction?

The Government Super Deduction is a temporary tax incentive introduced by the UK government to encourage businesses to invest in new equipment. This incentive allows companies to claim a 130% tax deduction on qualifying capital investments made between April 1, 2021, and March 31, 2023.
 

How does the Government Super Deduction work?

Under the Government Super Deduction, businesses can claim a 130% tax deduction on qualifying capital investments. This means that for every £1 a company spends on qualifying capital investments, they can reduce their taxable income by £1.30.

For example, if a business spends £10,000 on qualifying capital investments, they can reduce their taxable income by £13,000. This means that they will pay less tax, which can help to improve their cash flow and bottom line.
 

What are qualifying capital investments?

To qualify for the Government Super Deduction, capital investments must be made in the form of new equipment, such as:

• Computer equipment and servers
• Office furniture and fittings
• Solar panels
• Tractors, lorries, and vans
• Machinery and plant, welding equipment
• Refrigeration units
• Compressors
• Foundry equipment

Why should businesses consider taking advantage of the Government Super Deduction?
 

1. Reduce tax liability: By claiming the Super Deduction, businesses can reduce their tax liability, which can help to improve their cash flow and bottom line.
2. Encourage investment: The Super Deduction encourages businesses to invest in new equipment, which can help to improve productivity, efficiency, and competitiveness.
3. Create jobs: By investing in new equipment, businesses can create new jobs, which can help to boost economic growth and reduce unemployment.
4. Future-proof the business: By investing in new equipment, businesses can future-proof their operations, making them more resilient to changes in the market.
    

Contact us today to discuss your welding and other industrial equipment requirement needs and take advantage of this scheme before it ends!