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.
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