To help stimulate business investment and promote economic growth and recovery from the pandemic, in the 2021 Spring Budget, the Chancellor announced the introduction of temporarily increased tax reliefs for the purchase of qualifying assets.
From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to offset against taxable profits:
The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest. This provides significantly faster tax relief for qualifying investments, helping businesses to invest and grow.
Only companies who pay corporation tax can take advantage of this tax incentive. However, sole traders and partnerships can look to still take advantage of the Annual Investment Allowance which is currently set at £1 million and is in place until 31st December 2021.
Expenditure must be on new and unused plant and machinery and expenditure needs to be incurred on or after 1 April 2021, but before 1 April 2023. Assets can be funded via Hire Purchase finance, but cannot be leased.
Most tangible capital assets used in the course of a business are considered plant and machinery for the purposes of claiming capital allowances. There is not an exhaustive list of plant and machinery assets, eligible assets he kinds of assets which may qualify for either the super-deduction or the 50% FYA include, but are not limited to:
Vans, Lorries, Trailers
Cranes, diggers, excavators
Production equipment, robotic arms
Tractors, combine harvesters, crop sprayers
Computer Equipment and Servers
Solar panels
Electrics vehicle charging points
If you are looking to purchase assets which qualify for this expenditure, then please get in touch to discuss finance options and solutions.
At Lombard, lending is all we do, and we’ve been doing it for over 150 years. We are here to support your business with the Annual Investment Allowance and the Super-deduction. We provide asset finance for firms of all sizes, from small family concerns to large commercial enterprises and across sectors, from manufacturing to renewable energy, technology, agriculture and vehicles and fleets.
If you are looking to finance an asset you could get a Hire Purchase quote now.
One of our specialist team will discuss your specific needs
Phone 0800 151 2959
Lines open Mon-Fri 9am-5pm
Relay UK: 18001 0800 502 402
For more information on accessibility visit:
https://www.lombard.co.uk/lombard/Toolbar/accessibility.html
