Invest in your business with Super-deduction and Annual Investment Allowance
Introduced on 1st April 2021, the super-deduction allows companies to cut their tax bill by 25 pence for every £1 they invest in any qualifying machinery and equipment. This can include the purchase of computers, most commercial vehicles and office furniture. Qualifying purchases must be new & not bought 2nd hand.
The temporary £1 million limit for the Annual Investment Allowance has also been extended to the end of March 2023. This had been due to revert to £200,000 at the start of 2022. The Annual Investment Allowance allows businesses to spend up to £1 million on qualifying business equipment, and deduct in-year its full cost before they calculate their taxable profits.
Both of these tax breaks remain available for companies to take advantage of until the end of March 2023, by incurring qualifying expenditure before then.
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