LUDLOW-based accountancy firm Thorne Widgery is calling on businesses to explore the tax-saving opportunities afforded by the new super-deduction capital allowance scheme.

Announced in the Budget earlier this month, this new form of Corporation Tax relief will help reduce a company’s liabilities by almost 25p for every £1 of qualifying expenditure on new plant and machinery.

This new form of tax relief is intended to help businesses invest in equipment, such as computer equipment and servers, electric vehicle charge points and commercial vehicles, such as vans, lorries and construction equipment.

“Many businesses are now looking to the future beyond the pandemic as the Government’s roadmap out of lockdown continues to progress.,” said Daniel Crowther, chief executive at Thorne Widgery,

“Businesses should continue to invest in their growth, but with the challenges of the last year and constraints on cash flow many companies may be considering delaying their investment plans.

“This new super-deduction will remain available until March 2023 and so businesses must take advantage of this unique opportunity, which could help to significantly reduce their Corporation Tax bill.”

Businesses will be able to use an additional first-year allowance of 50 per cent on most new plant and machinery investments that ordinarily qualify for special rate writing down allowances, which include improvement to parts of a building considered integral, thermal insulation and items with a long life.

“The first-year allowance will allow almost 10p of every £1 of qualifying expenditure to be claimed for, which with the main super-deduction could help businesses to significantly reduce the cost of improvements to their operations,” said Mr Crowther.