Skip navigation

Gloucestershire Business News

Super-tax deduction - is it a good time to invest? Richard Neale of OPS BOX

By Richard Neale, founder and director of OPS-BOX Group 

Back in March, the Government announced that from April 1st 2021 until March 31st 2023, companies investing in qualifying new plant and machinery assets will be able to claim a so-called super-tax deduction.

Richard Neale, founder and director of OPS-BOX Group takes a look at the tax relief and asks is it a good time to invest?

Companies investing in qualifying new plant and machinery assets will be able to claim:

  • a 130 per cent super-deduction capital allowance on qualifying plant and machinery investments
  • a 50 per cent first-year allowance for qualifying special rate assets

So called super tax-deduction, this potentially allow companies to reduce their tax bill by up to 25p for every £1 invested, backing up that the UK is hugely competitive in the global market for capital allowances.

Of course, this incentive is offered to companies at a time when they are recovering or and still suffering from the consequences of the pandemic. However, the benefit is significant when looked at critically, encouraging businesses to invest in their assets and achieve a higher return on those investments through tax incentives not traditionally available.

It is true that in general many businesses are in a favourable position with cash reserves following the Government's laudable efforts last year in providing Coronavirus Interruption or Bounce Back loans to those eligible.

Many have decided to hold on to this cash for a rainy day, many have chosen to repay with the trading consequences on some businesses being nowhere near as pessimistically envisaged.

Finance for asset purchase

The taxation incentive is there. And despite reports to the contrary, if funding is required, this is also available.

Primary lenders are still taking stock with the impact 2020 caused to them, but there are many different lenders available, more than ready to step up and support UK companies wishing to borrow for asset purchase. Having a choice of lender is undoubtedly more important now than ever.

At OPS-BOX we have been helping to finance asset acquisition throughout this year for businesses across many sectors and have access to over 80 funders covering all areas of the asset finance industry. We can find specific finance solutions tailored to your business.

Our network extends not only to funding newly purchased items, but also the refinancing of existing owned assets in many circumstances.

If asset purchase and funding is on your agenda, get in touch with us at OPS-BOX. Using our extensive experience in lending to businesses of all size, and with FCA approval as appointed representatives and commercial finance introducers, we want to make sure that you are offered finance as competitively and compliantly as possible.

Richard Neale is co-founder and director of OPS-BOX Group. OPS-BOX provide a range of support services to help business of all size and type to grow and succeed.

For more information visit www.ops-boxgroup.com, email enquiries@ops-boxgroup.com, or call us on 07759 407064 or 07432 557966.

Related Articles

Why business owners should think twice before disposing of assets – Laura Stone of Willans LLP Image

Why business owners should think twice before disposing of assets – Laura Stone of Willans LLP

When looking to the future, or going through a change in circumstances, it's likely that business owners may wonder whether selling or disposing of assets and interests is the right step to take.

Punchline Talks! The B!G Interview with Jeremy Drew, development director for Newland Homes Image

Punchline Talks! The B!G Interview with Jeremy Drew, development director for Newland Homes

Punchline Talks! The B!G Interview with Jeremy Drew development director for Newland Homes.

E:80 Punchline Talks! With Chris Nelson, Dr Polly Pick, Alisdair Garbutt and Simon Pigott Image

E:80 Punchline Talks! With Chris Nelson, Dr Polly Pick, Alisdair Garbutt and Simon Pigott

Punchline-Gloucester.com editor Mark Owen is joined by leading Gloucestershire business figures.

Copyright 2022 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.