The UK Budget 2021 announcement by Chancellor Rishi Sunak on March 3rd was fundamentally focused on reversing the catastrophic economic damage caused by Covid-19 and the national lockdowns implemented to minimise its spread throughout the country. Several aspects were designed to protect businesses, jobs and the livelihoods of millions of Britons, including the temporary introduction of a 130% “super deduction” tax relief incentive designed to prompt investment in new plant and machinery.
In effect, businesses are able to claim tax relief based on 130% of their actual investment in eligible equipment. This stimulates economic growth by encouraging businesses to invest in new equipment when they may not have previously planned to.
The super deduction is applicable for purchases of the following goods:
- New kitchen equipment including commercial fryers, fridges, and freezers.
- Commercial vehicles and vans including mobile fish & chip vans.
- Newly installed solar panels and/or boilers.
- Computer hardware including desktops, laptops, and Epos systems, but excluding accessories such as keyboards.
It is important to note that relief is only available for the purchase of new equipment, not for second hand equipment or repairs of existing equipment.
The super deduction is only available to companies required to pay corporation tax. Unincorporated businesses can instead claim capital allowances of 100% up to £1 million as an annual investment allowance. This allowance was recently extended until December 31st 2021, when it will revert back to £200,000.
You can start benefitting from the super deduction from April 1st 2021 and have until March 31st 2023 to save on investment into your business.
Make tax savings by investing on a brand new VITO portable pressure oil filtration system or Valentine EVO commercial pan fryer. Many of our products are eligible for the super deduction, meaning you could save the following:
Check out our full range today!