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Upgrade Machinery and Equipment Now and Gain Tax Relief!

Upgrade Machinery and Equipment Now and Gain Tax Relief!

Posted by Joe on 17th Mar 2021

Are you aware that the government in it's 2021 budget, changed the tax relief on upgrading plant and machinery? This change is temporary, for a period of two years.

This change can benefit businesses by giving a tax relief of up to 130% for upgrading machinery.

The 130% super-deduction and 50% first-year allowance are generous brand new capital allowances for investments in plant and machinery assets.

Both will allow investing companies to lower their corporation tax bills.

For full details, follow the link below
Super Deduction Factsheet

This is very good news for businesses wanting to upgrade their equipment.

Under the new super-deduction rules, for every pound a company invests, their taxes are cut by up to 25%.

For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments.

Why is the government introducing super-deduction?

Since the Covid-19 pandemic, existing low levels of business investment have fallen, with a reduction of 11.6% between Q3 2019 and Q3 2020.

Much of the UK’s productivity gap with competitors is attributable to our historically low levels of business investment compared to our peers.

Weak business investment has played a significant role in the slowdown of productivity growth since 2008.

Making capital allowances more generous works to stimulate business investment. As a result, these measures can promote economic growth and counter business cycles.

The super-deduction will give companies a strong incentive to make additional investments, and to bring planned investments forward.

Check it out, it's a great opportunity to renew your outdated equipment.

Let us help you to save money! CALL us for more information.

01625 827827

Email: enquiries@smsfoodequip.com