Following the Government’s Spring Budget announcement last week, we wanted to make you aware of how you can benefit from the new Super-Deduction tax scheme.
From 1 April 2021 until 31 March 2023, businesses investing in qualifying assets will benefit from:
- A super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances.
- A first-year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances.
The Super-Deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest.
Businesses will be able to deduct the full value of qualifying assets from profits before tax. Overall tax liability is reduced as the full tax relief is received in the year assets are purchased rather than over several years.
If you would like more information on the scheme please visit the Government’s website or speak to your Azule Account Manager.