What you need to know about the Super Deduction Scheme:

In April 2021, the UK Government introduced a Super Deduction Scheme on qualifying asset investments for Limited Company’s until 31st March 2023.

Here’s what you need to know:
130% first year tax relief on qualifying machinery investments until March 2023
(new machines only).

On a spend of £100,000, the corporate tax deduction will be £130,000 giving
a corporation tax relief at 19% on £130,000, which is £24,700.

There is no expenditure limit on the Super Deduction Scheme.

Whether purchased outright or on HP the purchase qualifies.

Let’s break it down on a £50,000 asset purchase.
£5OK asset = £65K tax relief (130%). £65K @ 19% = £ 12,35O Tax Saving. If you decide not to invest this £5OK in anything, you will pay £9,5OO tax on the £5OK profit.

Effectively save almost 25% on a new asset purchase, courtesy of HMRC.

Tax issues should always be discussed with a qualified accountant, as individual circumstances can vary. Full Circle Asset Finance Limited are not responsible for any tax implications or costs.

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Luke

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