Time is running out to claim 130% allowances. The deadline is 31st March 2023
What is it:-
The super deduction allowance is only available to Limited Companies chargeable to corporation tax
The super deduction is a first year allowance available on expenditure by companies on plant and machinery. It has no limit and is available from 1st April 2021. It is for businesses who want to invest in assets for their business and allows companies to reduce corporation tax bills by reducing taxable net trading profits by 130% of the total cost of expenditure incurred. So for every £10K spent on assets, £13K can be deducted from the taxable profit before corporation tax is calculated.
The assets must be bought:-
- New and Unused
Also the expenditure must be between:-
- 01.04.21 – 31.03.23
This means that second hand goods do not qualify.