Compact Electric Vehicles | Claim 130% tax relief on any new…
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Claim 130% tax relief on any new commercial electric vehicle.

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As you may be aware, the Government have temporarily introduced increased reliefs for expenditure on plant and machinery.

For qualifying expenditures incurred from 1 April 2021 up to and including 31 March 2023, companies can claim in the period of investment:

  • a super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowance
  • a first year allowance if 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances

Example:

  • Spend £100,000 on qualifying assets
  • Deduct £130,000 (130% of the initial investment) using the 'super-deduction' in year 1
  • Total tax saving £24,700

As you may be aware, the Government have temporarily introduced increased reliefs for expenditure on plant and machinery.

For qualifying expenditures incurred from 1 April 2021 up to and including 31 March 2023, companies can claim in the period of investment:

  • a super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowance
  • a first year allowance if 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances

Example:

  • Spend £100,000 on qualifying assets
  • Deduct £130,000 (130% of the initial investment) using the 'super-deduction' in year 1
  • Total tax saving £24,700


For more information or to arrange a free site survey, please contact the Compact Team on 01384 238000 or info@compactelectricvehicles.com

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