The Super Deduction
Overview
A government incentive of 130% capital allowance is being offered on qualifying plant and machinery investments, this makes it a great time to invest in your business. Under the super-deduction, for every pound a company invests in plant and machinery, their taxes are cut by up to 25p.
Even better news is that investment in software like Predator DNC, Predator MDC and Predator PDM can be considered as “plant“ to take advantage of this allowance, even if new machines aren’t viable in the qualifying period!
For Example
- Your Company invests £10,000 in a Predator DNC System. (great decision!)
- This is a qualifying investment and means your company can deduct £13,000 (130% of the qualifying investment) when calculating their taxable profits.
- Deducting £13,000 from taxable profits will save your company 19% of that or £2,470 on your corporation tax bill.
How long have I got to take advantage of this?
You have until March 31st 2023 to make the qualifying investment in your business. If you want to take advantage of the Super Deduction and improve the efficiency of your shop floor, take more control of your production data, increase OEE and move further into Industry 4.0, why not talk to us about helping you.
Want to know more about Super Deductions?
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The Super Deduction and Computer Software
A fact sheet from the respected accounting group Moore UK, explaining how software can be treated for the Super Deduction.
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HM Treasury Super Deduction Factsheet
A 3 page government fact sheet with general information about Super Deduction and Capital Allowances.
