The super-deduction regime, which will run until March 2023, will let companies cut their tax bill by up to 25p for every £1 they invest.
In total over the next two years, companies are expected to benefit to the tune of £25 billion.
Eligible investment items can be found in the following categories:
- Solar panels
- Computer equipment and servers
- Tractors, lorries, vans
- Ladders, drills, cranes
- Office chairs and desks,
- Electric vehicle charge points
- Refrigeration units
- Foundry equipment
For example, a manufacturer buying a new item of ‘qualifying’ plant, machinery or even a solar PV array for £1 million, will be able to deduct £1.3 million from taxable income.
For more information on how to make the most of these allowances, please click here.
Further information can also be found on the HM Treasury website by following the link below:
Super-deduction – GOV.UK