17/02/2023
The super-deduction offers 130 per cent first-year relief on qualifying investments from 1st April 2021 until 31st March 2023 for companies.
For most business equipment, there will be a super-deduction of 130 per cent of the expenditure incurred. This will mean that on a spend of £100,000, the corporation tax deduction will be £130,000, giving corporation tax relief at 19 per cent on £130,000, which is £24,700.
Normally such expenditure would either fall within a company’s annual investment allowance and produce relief of only £19,000 or alternatively be tax-relieved at 18 per cent of the cost per annum.
The super-deduction tax break means you can claim 130 per cent of what you spend on IT equipment and digital transformation projects for your business against taxable profits.
