In the Spring budget, the Chancellor of the Exchequer announced the launch of a new super-deduction providing 130% tax relief on most new plant and machinery investments made from 1st April 2021 until 31st March 2023. The full cost plus a further 30% is deductible against corporation tax in the year the assets are bought, accelerating tax relief compared to writing down allowances (WDA), which are normally applied over several years.
For plant hirers, there are currently exclusions for non-operated machines. In any event, speak to your accountant or tax advisor for guidance. So, if your purchase type or business is not eligible for the super-deduction relief, remember the Annual Investment Allowance (AIA) continues at the heightened level of £1 million until 1st January 2022, giving businesses other opportunities for tax savings.
Purchases on HP are treated the same as if you pay cash, so you may benefit from the full relief after having only paid a deposit. Click below to request a call back to discuss finance on your planned purchases.
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.JCB Finance Ltd is registered in England No.972265 and registered office: The Mill, Rocester, Staffordshire, ST14 5JW. JCB Finance Ltd is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 708332). UK business users only; terms and eligibility criteria apply.