The Super-Deduction scheme was introduced in April 2021 to allow companies to write off certain capital assets against taxable income. This has led to many companies wondering what plant and machinery qualifies for Super-Deduction tax savings. This guide will help you to understand what assets qualify for Super-Deduction savings so that you can take advantage of the scheme in 2022. Once you’ve read the guide, you can use our Super-Deduction calculator to see exactly how much tax relief you can expect.
What are the requirements for Super-Deduction savings?
In order to be eligible for the Super-Deduction scheme, assets must be a qualifying form of plant or machinery investment. The assets must meet the following criteria:
- They must be used within the business itself (assets cannot be bought in order to be leased or hired out to clients or other companies)
- Assets must be bought new. Second hand items are not eligible under the scheme.
- They must be a ‘qualifying form of plant or machinery’
The final point is the most open to interpretation and that is what we will discuss next – what plant or machinery qualifies for Super-Deduction in order to lower your tax bill. The following groups of assets all qualify for the Super-Deduction scheme and are eligible for tax savings.
When you hear ‘plant and machinery assets’, heavy machinery like forklifts or scissor lifts are likely the first things that come to mind. You will therefore not be surprised to learn that these assets are all covered under the Super-Deduction scheme. If you are investing in these goods in 2022, you should certainly explore the possibility of tax savings as it is likely to be qualifying expenditure.
You may be surprised to hear that office furniture such as desks, chairs and cabinets are also included under the Super-Deduction scheme. If you are installing a new office space with a warehouse partition or on a mezzanine floor, you may be able to save.
Warehouse Shelving and Racking
Warehouse shelving and pallet racking systems are all included within the Super-Deduction scheme, so it is imperative that you seek advice if you are investing in these storage solutions. If you are expanding your warehouse storage space with new racking it is highly likely that this investment will qualify. Similarly, if you are looking to upgrade your racking to advanced systems such as pallet live storage or to maximise space with narrow aisle pallet racking, you can take advantage of tax savings.
Conveyor systems are used to efficiently and safely move items within a warehouse facility and can have a huge benefit to warehouse optimisation strategies. You will be pleased to learn that these too are included within the Super-Deduction savings scheme.
With the cost of bigger warehouse spaces often prohibitively expensive, growing companies are increasingly looking to maximise the space they already have. One way to do this is through installing a mezzanine floor. Using a mezzanine floor is one of the best ways to increase the usable square footage of a warehouse and it too is included within the Super-Deduction scheme. If you are looking at installing a mezzanine floor in 2022, you could be eligible for tax savings.
How we can help
The Super-Deduction scheme can be confusing to understand, but it is important to know that more may be covered under the rules than you thought. If you are making investments in Super-Deduction qualifying plant and machinery in 2022, there is a good chance they will be eligible for tax savings.
At Oakway Storage, we are experts in warehouse storage solutions such as shelving, pallet racking, mezzanine floors and more. We consult, plan and install warehouse storage solutions and we are also able to advise on Super-Deduction eligibility. Get in touch today or call 01604 792255 to speak to a specialist and see how much you could save.