22.11.23. Breaking News: Chancellor Jeremy Hunt, announces Corporation Tax Full Expensing has been a permanent tax cut.
100% tax relief is now available on eligible purchases like JCBs, plant, equipment, and commercial vehicles – offset against taxable profits via either the Annual Investment Allowance or Full Expensing, permanently.
Available on purchases made using Hire Purchase
You can claim the Annual Investment Allowance and Corporation Tax full expensing relief on qualifying assets placed on Hire Purchase just as if you had paid cash; enabling you to preserve working capital, choose payment terms to suit your business and save the tax – even if only the deposit has been paid!
Annual Investment Allowance (AIA) - Up to £1 Million Tax Relief
£1 million tax relief opportunity under the Annual Investment Allowance remains in place. Effectively benefitting from tax relief of £1 in taxable profits for every £1 spent on qualifying expenditure. The incentive to invest accelerates the tax relief into the year they were purchased, compared to writing down allowances (WDA), which are normally applied over several years.
This allowance is available to sole traders, partnerships and limited companies alike on qualifying new and used assets. Note cars are not eligible.
Corporation Tax Full Expensing - Unlimited Tax Relief on 100% of your Investment
Unlimited investments made by companies in qualifying new plant and machinery will qualify for a 100% first-year allowance for main rate assets like JCBs, plant, equipment, and commercial vehicles. This means companies across the UK will be able to write off the full cost in the year of investment, known as full expensing.
Expenditure on plant or machinery for leasing (likely to include non-operated plant hirers) is excluded from first-year capital allowances and cars are not eligible. In any event, speak to your accountant or tax advisor for guidance if qualification for the relief is essential to your purchase decision.
If you would like a competitive Hire Purchase quotation on flexible payment terms matched to the needs of your business please click here.
JCB Finance is not a tax advisor or financial advisor; always seek advice from your accountant or finance director because every business’s circumstances are different. Businesses should not make investment decisions purely on a tax basis; there should be a compelling business case for the investment. UK business users only; terms apply.
JCB Finance Ltd Registered in England No.972265 Registered Office: The Mill, Rocester, Staffordshire, ST14 5JW. JCB Finance Ltd is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 708332). Finance is restricted to business users in the United Kingdom, subject to acceptance by JCB Finance Ltd and affordability checks.