From 1 April 2021 until 31 March 2023, companies investing in qualifying capital assets, including IT hardware, will be able to claim:

  • a 130% super-deduction capital allowance on qualifying plant and machinery investments, such as IT hardware
  • a 50% first-year allowance for qualifying special rate assets

The super-deduction tax break will allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring that the UK capital allowances regime is amongst the world’s most competitive.

The government initiative should act as a major investment catalyst. This measure will allow a temporary first-year allowance, including a super-deduction of 130% on most new plant and machinery investments which would have ordinarily qualified for 18% relief and a first year allowance of 50% on most new plant and machinery investments which would have ordinarily qualified for 6% relief. Providing not only an accelerated timing benefit but additional tax relief on expenditure incurred.

These measures should be welcomed by businesses and will encourage an immediate acceleration of investment, instead of holding off, the benefits of which are that these decisions being brought forward give the returns today.

Integrity IT Solutions can also facilitate the financing of IT hardware, by connecting you to industry leading asset financiers. Helping to grow your business, improve your productivity and plan your budgets, whilst aiding cash flow and removing obstacles to early investment. Bringing reward to your business which is both significant and immediate.

If you would like us to look at any of your IT issues, or to discuss this opportunity for supporting any IT Investment you may require, please do not hesitate to contact us.

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