You need to know about ‘Super-deduction’ NOW!
Tax advice is not really our ‘bag’ but after reading a fascinating article by workshop owner and motor trade luminary, Hayley Pells, on ‘Super-deduction’, we felt compelled to share and endorse her musings.
From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:
- A 130% Super-deduction capital allowance on qualifying plant and machinery investments;
- A 50% first year allowance for qualifying special rate assets; and
- Allow companies to cut their tax bill by up to 25p for every £1 they invest, making the UK capital allowance regime one of the most competitive in the world.
For further commentary, we can do no better than direct you to Hayley’s blog: https://www.autoresource.co.uk/resources/advice-and-insights/taxing-time-guest-blog-hayley-pells/
Moreover, guidance is available from GOV.UK via its factsheet: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/967202/Super_deduction_factsheet.pdf
Of course, none of this is substitute for proper professional advice. Should you have any queries, doubts or concerns about anything you read here, then you should speak with your accountant.
We’re here to ensure all used car dealerships deliver a better car finance experience for their customers. With over 4,000 approved dealer partners we ensure you are properly supported and connected with a range of flexible finance options, allowing you to lend and your customers to buy in complete confidence.
