130% Super Tax Deduction for IT Equipment

Nov 8, 2021

Buying new IT Equipment can be a big cost to your business, but the 130% Super Tax Deduction can lower that cost for you!

The new super tax deduction is the single biggest tax incentive any UK government has ever given for business investment into assets and equipment. 

For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments. Under this super tax deduction, for every £1 you spend on qualifying plant and machinery equipment, you’ll get 25p back. 

 

So, what equipment qualifies for the deduction?

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. The kinds of assets which may qualify for either super-deduction or the 50% FYA include, but are not limited to:

  • Solar panels
  • Computer equipment and servers
  • Vans, lorries, and tractors
  • Ladders, drills, and cranes
  • Office chairs and desks
  • Electric vehicle charging points 

If you are looking to make additional investments to help grow and improve your business this deduction tax will help you to bring these planned investments forward as well as allowing you to incur lower costs. 

Find out more about the opportunity here