The super-deduction benefit for office equipment (and other plant & machinery!)

In the government budget of 2021, it was announced that from April 2021 until March 2023, businesses can claim 130% capital allowances on all qualifying plant and machinery investments. The new ‘super-deduction benefit’ as it’s now known, is one of the best tax incentives ever offered to businesses by a British government, and the then Chancellor Rishi Sunak called it a “direct way to help businesses invest” and “drive growth in the economy”.

What is a super tax deduction?

From April 2021 for two years, any investments a business makes in main rate plant and machinery may qualify for a 130% capital allowance deduction, therefore reducing corporation tax bills. Companies tax will be cut by up to 25p for every pound they invest in qualifying equipment, which includes all of the following:

 

• Items purchased for business use, including cars, office chairs, desks, computers, racking, shelving, etc.
• Costs of demolishing plant and machinery
• Integral features of a building
• Alterations made to a building so that new plant and machinery can be installed

 

This is great news for Manutan customers because items purchased for business use, which can range from pallet trucks to COSHH cabinets or even lockers are all included under the super-deduction.

Why was the super-deduction introduced?

Quite simply, the super-deduction was introduced as a tax break with the intention of boosting the UK’s post-COVID-19 economic recovery. Since the pandemic began, business investments have fallen sharply according to the Treasury’s super-deduction fact sheet, therefore the super-deduction is an effort by the government to stimulate business investment and growth going forward.

Please check with your own Finance Department to confirm that you’ll benefit from the super-deduction.