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Businesses are being urged to take advantage of the 130 per cent super-deduction tax relief before its March deadline.

Introduced during the pandemic, super-deduction was designed to help organisations continue to invest through the difficult times.

But from March 31, the support will draw to a close.

What is super-deduction?

Super-deduction is a tax incentive to encourage companies to invest in qualifying assets, from vans and cranes to office desks and chairs. It was intended as a tax break for those businesses hesitant about investing during the pandemic to help trigger an economic recovery.

How does it work?

If your company spends £10m on qualifying assets, you will deduct £13m from your taxable profits for a tax saving of 19 per cent – or £2.47m.

Why is it ending?

The Government introduced super-deduction in April 2021, but it was only ever intended as a short-term deal. It was part of a raft of support introduced for businesses post-pandemic to support growth and encourage investment.

Can I still take advantage?

Time is tight, but you can still make qualifying purchases ahead of the cut-off date.

What purchases would qualify?

Most tangible capital assets used in your business would qualify for super-deduction. These include:

  • Solar panels
  • Computer equipment and servers
  • Tractors, lorries, vans
  • Ladders, drills, cranes
  • Office chairs and desks
  • Electric vehicle charge points
  • Refrigeration units
  • Compressors
  • Foundry equipment

 

Bob Edwards, Founder and Managing Director of Landmark PD, said: “If you haven’t already taken advantage of super-deduction then I would encourage you to do so before the deadline.

“You may have office equipment that you have been thinking of replacing or you have your eyes on a van you want to add to your fleet…do it now and save your business some money.”

Further information can be found at gov.uk.

If you need any advice on what will qualify for super-deduction, get in touch.

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