Investing in new machinery to reduce your tax bill

Investing in new machinery to reduce your tax bill

The new Government super-deduction capital allowance will allow companies who invest in qualifying new plant and machinery assets to cut their tax bill by up to 25p for every £1 invested. With much of the UK’s productivity gap attributable to low levels of business investment, the Government is hoping that the super‐deduction will give companies a strong incentive to bring planned investments forward and make additional investments.

From 1 April 2021 to 31 March 2023, you can claim:

  • a 130% super-deduction capital allowance on qualifying plant and machinery investments
  • a 50% first year allowance for qualifying special rate assets

What’s included that you might be buying that may be eligible?

  • tractors
  • lorries
  • vans
  • ladders
  • drills
  • office chairs and desks

Further information can be found in the Government’s factsheet.