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What the new 130% ‘super deduction’ could mean for dentists


  Posted by: Dental Design      8th March 2021

The government has stated that from 1 April 2021 – 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:

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

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

The government has offered unprecedented support for businesses during Covid. Even so, pandemic-related economic shocks and the accompanying uncertainty have chilled business investment. This super-deduction will encourage firms to invest in productivity-enhancing plant and machinery assets that will help them grow, and to make those investments now.


Michael Copeland, at Wesleyan Group, the specialist financial services mutual, commented on how this can affect dental practices: “The new 130% ‘super deduction’ is great news for dentists wanting to make further investments in their business – be that upgrading airflow equipment to maximise surgery capacity, or investing in new chairs and other surgery equipment. Ultimately, it will slash their tax bill as they invest – supporting growth across their business.”

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