The super deduction capital allowance Ends in 2023

Super deduction is a tax relief that allows businesses to claim 130% of the cost of certain investments in new machinery, which is then classed as a deduction against their taxable profits. In its simplest sense, you can claim 130 pence for every pound you spend on qualifying assets. The super deduction is only available for a certain time period, and will apply to investments made between April 1, 2021, and April 1, 2023. One additional criterion you need to be aware of, is you must be a business and not sole trader. 

Why is there a super deduction tax relief? 

The Chancellor of the Exchequer in 2021, Rishi Sunak, announced there would be additional support for businesses after the disruptions from the pandemic. The super deduction capital allowance was introduced as a way for business owners to invest, in an effort to grow the economy. Which is why it is only for purchases within the 2-year window. The idea is to increase the investment into all types of businesses, that will then lead to a spike in productivity.  

What qualifies for super deduction tax relief? 

There is a long list of technological equipment that could be accepted for the super deduction scheme, the ones most relevant for most farms would be the technology you use for day-to-day operations. 

Tablets and iPads 

Most of today’s software is now ran from mobile devices, as they are more convenient, and offer quicker access. LiveFarmer farm management software, for example, is accessed predominantly from iPads or other preferred tablet devices. As these come under the electrical systems section under integral features, you can claim every device you purchase back at the 130%.  

iPhone and Smartphones 

For the exact same reason tablets are covered, you can also claim back on mobile devices such as iPhones and other tablets; this includes Windows and Android tablets. With some of the growers wanting to use a smaller, pocketable device, when out in the field, they prefer using a smartphone.