What the new 130% ‘super deduction’ could mean for dentists
NewsPosted 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.
Source: https://www.gov.uk/guidance/super-deduction
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.”
