8th Apr 2021
Businesses Can Claim A 130% 'Super-Deduction'
As confirmed in the Spring Budget, a 130% ‘super-deduction’ is being introduced to incentivise company investment. For expenditure incurred from 1 April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments.
Under the ‘super-deduction’, firms will be able to cut their taxes by up to 25p for every pound they invest.
WHAT WILL THE NEW CAPITAL ALLOWANCES SCHEME OFFER?
Capital allowances provide taxpayers with the option to ‘write off’ the cost of certain capital assets against taxable income. Companies will have the opportunity to benefit from the following capital allowance measures, and therefore lower their corporation tax bills:
– Super-deduction – this offers companies 130% first year allowance on qualifying main rate plant and machinery from 1 April 2021 until 31 March 2023
WHAT DOES THIS MEAN FOR FILM PRODUCTION COMPANIES?
The scheme covers filming equipement such as cameras, lighting, computers and other accessories. For example, if you purchase film equipment for £1 million, you will be able to deduct £1.3 million of your tax profits. After corporation tax (currently at 19%) that is around £247,000 deducted of your company's tax bill.
Make the most of the new 'Super-Deduction' scheme by taking a look at our latest trending products.