What does the Super Deduction on Plant mean for you?
17th May, 2021
What is the Scheme?
Under the chancellor’s 2021 budget, companies investing in new plant and machinery over the next two years may be eligible for a ‘super deduction’. Chartered Accountants, BHP, described the super deduction as an enhanced capital allowances regime, allowing a 130% deduction on plant and machinery purchased for the main pool.
Described by the Chancellor of the Exchequer as the biggest business tax cut in modern history, the CEO of Construction Equipment association, Rob Oliver, explains that: “for every £100 firms spend they will receive a tax credit of £130”.
The chancellor concluded, “We’ve never tried this before in this country”. This is a truly momentous event for the construction industry in the United Kingdom, and it presents an opportunity for many companies to grow and expand.
So, what qualifies?
Firstly, expenditure needs to be incurred on or after April 1st 2021 but before April 1st 2023. Additionally, expenditure has to be on new and unused plant and machinery. Assets that would have normally qualified in the main pool are:
- Computer Equipment
- Commercial Vehicles
How we can help!
At MTS Plant, we can offer your business a robust range of new construction plant from Japan’s Yanmar, with options including excavators, tracked dumpers, wheeled loaders, and wheeled excavators. Discover more about our range of new equipment here: https://www.mtsplant.co.uk/plant-machinery-sales/
*This article is intended to increase public awareness surrounding the scheme, not to offer advice. If you would like to find out more about the newly announced Super Deduction scheme, contact your Accountant.