top of page
Startup Development Team

Super Deduction Tax

Claim 130% capital allowances on qualifying software

What is it?

The super-deduction is a capital allowance  which offers 130% first-year relief on qualifying main rate plant and machinery investments from 1 April 2021, until 31 March 2023.

​

Capital allowances let taxpayers write off the cost of certain capital assets against taxable income.

questions gif.gif

 For every £1 spent on qualifying assets,

25p is returned in saved tax.

tax savings investments.png

Can the Super Deduction

be used on Software?

While there are obviously certain exceptions accounting software also qualifies, alongside some costs associated with bringing IT software investments into operation such as consultancy and implementation. 

Increase your deduction

With the Annual Investment Allowance businesses can use up to £1,000,000 of spending on qualifying expenditure to be deducted from profits, reducing the tax bill by the Corporate tax rate 19%.

​

With Super Deduction, companies can increase this deduction by 30%.

​

​

Example

with Annual Investment
with SUPER DEDUCTION
Qualifying Expenditure Software Purchase
£10,000
£10,000
Super Deduction 130%
£13,000
Tax Deductible Saving 19%
£1,900
£2,470
% Saved In Tax
19%
25%

Start your transformation

Schedule a call with one of our Software Experts and start your digital transformation benefiting from the Super Deduction.

Cloud Solutions Provider for Partners
bottom of page