Budget 2021 – Super Deduction (130%) on new equipment investment!

Budget 2021

Rishi Sunak has announced as part of his 2021 budget companies need assistance to invest now!

To encourage jobs, growth, innovation and productivity he is introducing a new “SUPER DEDUCTION” for new investment in equipment.

You have been able to write down in the first year 100% of your new machine purchase (up to £1m) to reduce your corporation tax bill.

The small print needs to be checked but it looks like you will now be able to write down the purchase by 130% in the first year!!! Rishi didn’t mention the upper limit but using the example from his speech, he suggests a £10m investment would currently allow £2.6m write down in year one. Using the new SUPER DEDUCTION you should now be allowed to write down the asset by £13m in year one!!!

This is great news for anyone looking to invest in new machines and wanting to reduce this years corporation tax bill.