Super Deduction Capital Allowance is ending on the 31st March 2023.
Are you the owner of a Limited Company?
Have you been thinking about purchasing some equipment, machinery or technology, because if so now is the time to do it. If you make these purchases by the 31st March 2023, you will be making some significant tax savings.
The Super Deduction Capital Allowance was introduced by the UK Government as a temporary tax incentive to encourage businesses to invest in the three areas listed above (Equipment, Machinery, and Technology).
Usually, companies can only claim 100%, but currently, this is standing at 130% deduction, of the cost of qualifying assets from their taxable profits. This will reduce your tax bill and increase cashflow.
Let’s explain how it works:
Your business invests in new technology and equipment totalling £10,000 which qualifies for Super Deduction Scheme.
The business can claim a tax deduction of 130% of the cost of these assets in the year they were purchased. This means that they can claim a deduction of £13,000. So, when the accounts are generated, their taxable profits will be reduced by £13,000 which will be a significant reduction in your tax bill.
So, what are you waiting for???
