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CMI News

The Government Has Announced Tax Relief on IT Equipment

 

The following three offerings are set to save your business a significant amount of money. Available until March 2023 you can take advantage of the following.

  • 130% first-year relief on main rate computer equipment and servers.
  • 50% first-year allowance (FYA) for special rate (including long life) assets.
  • Annual Investment Allowance (AIA) providing 100% relief for computer equipment and servers. This is up to a £1 million threshold (its highest ever) until the end of this calendar year.

Why is this happening?

As with everything, business investment has been hit hard by COVID-19. By the end of Q3 2020, there had been an 11.6% decline over the year. The UK also has a particularly low level of investment compared to its peers, especially since 2008. This has created a productivity gap between them and the UK. So, to get the economy moving again and bounce back from the pandemic, the government is encouraging businesses to make any additional investments they can and bring any planned investments forward.

Of course, it’s not just IT equipment that’ll be receiving this windfall. The allowance goes for all plant and machinery investments, as well as office chairs, desks, and more.

For the full story, click here to download a PDF from the treasury.

 

If you’d like to work with an award winning team, contact one of our experts today. 

 

Graham Stead

Written by Graham Stead

Graham joined CMI following the acquisition of his previous business in 2016, having successfully run that for business for 20 years. Graham's absolute focus is on making sure that we consistently hold our clients central to everything that we do, and is often heard repeating our mantra "we exist to make a significant positive impact on our clients business". Graham and his team work closely with our clients to educate, inform, and ultimately to provide technology that delivers that positive impact. Outside of the office, he is a huge supporter of Bone Cancer Research Trust and has raised over £130,000 for them in recent years.

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