New machinery purchased from now up until March 2023 qualifies for great savings under the Government’s super-deduction scheme – here’s all you need to know.
Investing in new machinery and material handling equipment can be expensive and sometimes daunting for many businesses. Luckily, the Government’s new super-deduction scheme can save you money on new machinery until 2023.
The Government launched a new ‘super-deduction’ scheme in April, making capital allowances available for companies investing in qualifying new plant and machinery between 1 April 2021 and 31 March 2023. Under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p.
Investments in assets qualifying for capital allowances at the 18% main rate will benefit from a 130% first-year allowance. Investments in ‘special rate’ assets normally qualifying for allowances at only 6% will benefit from a 50% first-year allowance.
Essentially, that means now is a great time to invest in new equipment – the scheme is not available for used or secondhand equipment.
What is included as ‘plant and machinery’ under the scheme?
Plant and machinery can be, but is not limited to:
- Solar panels
- Computer equipment and servers
- Tractors, lorries, vans
- Ladders, drills, cranes
- Office chairs and desks
- Electric vehicle charge points
- Refrigeration units
- Foundry equipment
- Vehicles used for trading purposes (not cars)
We have already used the scheme to purchase a shiny new fleet of vans, and we’ve had lots of customers come to us in the past few months to take advantage of the savings to be had on new forklifts, pallet trucks, stackers and more.
Contact us today to find out more about how to use the scheme to purchase new material handling equipment. We’re not accountants, so please speak to an expert for professional advice, but we can help advise you on new machinery we sell which qualifies for the scheme.