This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Tax incentive provides support for new investment

31 March 2021

With much publicity given to the rise in UK corporation tax, set to increase to 25% from April 2023, there has been less coverage of the super-deduction option that launches tomorrow, 1 April.

Although only intended to run for the next two years, it provides up to 130% capital allowance relief for companies purchasing new plant and machinery.

With many facilities preparing for reopening or increased levels of activity, the super-deduction could provide an essential means to ensure that all areas remain compliant and operationally efficient.

In addition to the 130% capital allowance on investment in new plant and machinery, the scheme allows companies to claim up to 25% tax relief.

This was one of the topics to emerge from yesterday's PFM webinar discussing the most important areas of consideration for FMs and service providers preparing to reopen their facilities.

The topic was raised by Ascentae managing director Jon Knight, the sponsor of yesterday's event, who has provided the following example of how the super-deduction can work.

"A company incurring £1m of qualifying expenditure decides to claim the super-deduction. By spending £1m on qualifying investments, the company can deduct £1.3m (130% of the initial investment) in computing its taxable profits.

"By doing this the company will save up to 19% of that - or £247,000 - on its corporation tax bill," said Mr Knight.

More information on the super-deduction scheme can be found here.

He also explains that most tangible capital assets used in the course of running a business are considered to qualify as essential plant and machinery and will be relevant within the super-deduction.

In addition to the information above, a recording of yesterday's webinar will be posted on this website for those unable to attend the live discussion.


Print this page | E-mail this page

www.fsifm.com


MOST VIEWED...

View more articles
Article image

Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the r...
Article image

Covid special: Touch-free systems continuing to increase in popularity

With the Coronavirus pandemic continuing to influence workplace design and set up, contactless technology has seen increased use in many facilities....
Article image

All deadlines and new judge confirmed for PFM Partnership Awards

Entries for both the Account Director of the Year and Young Leader of the Year categories within the PFM Partnership Awards 2021 will need to be submitted ...
Article image

Essential advice for the reopening of facilities

FMs and service providers can click on the link below to view expert advice from the PFM panel of yesterday's live...

Benchmarking maintenance

BSRIA has just published this year's operation and maintenance benchmarking report as a guide for building operators to evaluate their performance against ...
Article image

FM and property management integrated into managing agent remit

Integration of FM, property management, accountancy and managing agent responsibilities have been announced by Edmond de Rothschild Real Estate Investment ...
https://www.uhubglobal.com
http://edition.pagesuite-professional.co.uk/Launch.aspx?PBID=78915b1c-0f11-4b5e-9468-ba601ad89761