So what is a super-deduction in tax?

5 May 2021

You may have seen in the budget they were introducing a new allowance for businesses that pay Corporation Tax – note that it therefore does not include sole traders. The basics are that businesses who make capital purchases of plant and machinery after 1st April 2021 until 31st March 2023 will qualify for 130% capital allowances. This super-deduction could be worth 25p in every £1 for businesses. It is important to note the purpose of this is to generate movement in the economy and therefore it is only relevant to the purchase of new items and not secondhand goods. Even so, it provides a welcome boost for business and encouragement to invest.

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