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

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.