Get the timing right to maximise tax benefits.
Life in taxation is always a moving goalpost – and things might change. However, as the rules currently stand, the 130% “super deduction” capital allowances will cease on 31 March 2023 and the 100% Annual Investment allowance limit reduces from £1 million to £200,000 from that date too. Headline corporation tax rates also increase from 19% to 25% too, with varying rates inn between depending on profit levels.
Depending on the business year end accounting date and the date of the expenditure being incurred can have a significant impact on the up-front tax relief available. This does involve some complex calculations – we recommend you contact us as soon as practicable to discuss your capital plans and identify the “windows” where the maximum tax efficiency can be obtained.
