Rarely do businesses have an opportunity to save on tax! So, to avoid missing out, we’d like to highlight tax opportunities which may enable you to deduct the cost of eligible purchases like JCBs, plant, equipment, and commercial vehicles from your taxable profits. Better still, you can claim the relief on qualifying assets placed on Hire Purchase just as if you had paid cash; enabling you to preserve working capital, choose payment terms to suit your business and save the tax – even if only the deposit has been paid!
Annual Investment Allowance (AIA) - Up to £1 Million Tax Relief
Last autumn the Chancellor announced his intention to make permanent the heightened level of £1 million tax relief opportunity under the Annual Investment Allowance, effectively benefitting from tax relief of £1 in taxable profits for every £1 spent on qualifying expenditure. The incentive to invest also accelerates the tax relief into the year they were purchased, compared to writing down allowances (WDA), which are normally applied over several years.
This allowance is available to sole traders, partnerships and limited companies alike on qualifying new and used assets. Note cars are not eligible .
Super-deduction 130% Tax Relief - Unlimited £'s Saving
This limited time offer of enhanced tax relief formed part of the Government COVID-19 recovery package and ends this March. Like the AIA, this incentive accelerates the tax relief into the year they were purchased but the Super-deduction incentive offers the full cost of assets plus a further 30% is deductible against corporation tax in the year the assets are bought. As a Corporation Tax benefit this is only applicable to body corporates and is also restricted to new assets only. For plant hirers, there are currently exclusions for non-operated machines. In any event, speak to your accountant or tax advisor for guidance if qualification for the relief is essential to your purchase decision.
If you would like a competitive Hire Purchase quotation on flexible payment terms match to the needs of your business please click here to find your local JCB Finance Relationship Manager.
JCB Finance is not a tax advisor or financial advisor; always seek advice from your accountant or finance director because every business’s circumstances are different. Businesses should not make investment decisions purely on a tax basis; there should be a compelling business case for the investment. UK business users only; terms apply.
JCB Finance Ltd Registered in England No.972265 Registered Office: The Mill, Rocester, Staffordshire, ST14 5JW. JCB Finance Ltd is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 708332). Finance is restricted to business users in the United Kingdom, subject to acceptance by JCB Finance Ltd and our usual affordability checks.
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