With the recently announced 'Super Deduction' tax break making the headlines, read on to find out just how this works...
- 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.
- Under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p.
- This change makes the UK’s capital allowance regime more internationally competitive, lifting the net present
value of our plant and machinery allowances from 30th in the OECD to 1st.
That business customers who acquire assets under Hire Purchase finance contracts could be able to access the super deduction. If under the agreement:
- Goods are bailed (hired) in return for periodical payments by the person to whom they are bailed (or hired).
- The title in the goods will pass to the person to whom they are bailed (or hired), if the terms of the agreement are complied with (i.e. by the exercise of an option to purchase).
Contact us today to find out more about how you can benefit from this tax break and for a competitive, no obligation
Tel.: 01245 373 172