New temporary tax reliefs on qualifying capital asset investments from 1 April 2021
This measure will temporarily introduce increased reliefs for expenditure on plant and machinery. For qualifying expenditures incurred from 1 April 2021 up to and including 31 March 2023, companies can claim in the period of investment:
- A super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances
- A first year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances
The measure also temporarily amends the rules covering expenditure incurred on plant and machinery used partly in a ring fence trade in the oil and gas sector.
View from General Welding:
“Capital allowances are a great incentive to businesses when investing in capital assets. The additional relief will hopefully stimulate investment within this businesses that have done well during the last year and who have liquidity to fund additional investment for opportunities that will arise post pandemic.”
“It’s a great time for manufacturing businesses to invest in new equipment, replacing old equipment with the in the latest in technology saves time, money and makes for more efficient processes. Please get in touch today for a demonstration on the latest that technology has to offer”.