In the recent Budget announcement from the Treasury, Rishi Sunak outlined plans for a ‘Super Deduction’ which will incentivize companies to upgrade certain infrastructure by reducing their tax bill. From April 2021, companies can claim up to 130% of their Capital Allowances back from the Government, for qualifying investments. The list includes both Solar PV panels as well as EV Charge Points.
A new 130% first-year capital allowance for qualifying plant and machinery assets; and a 50% first-year allowance for qualifying special rate assets.
Under the scheme, for every pound invested, the company can save up to 25p on taxes. This kind of saving is hoped to be a win-win, as companies save whilst improving their business. The list of qualifying items is presented below:
- Solar panels
- Electric vehicle charge points
- Computer equipment and servers
- Tractors, lorries, vans
- Ladders, drills, cranes
- Office chairs and desks
- Refrigeration units
- Compressors
- Foundry equipment
For solar panel and EV installers this presents a fantastic opportunity to expand your business. With over 6 million private businesses in the UK, a huge selling opportunity has opened up. By alerting your customers to the potential to offset 25% of the cost of Solar PV & EV Charging, you put yourself in the driving seat to secure their future business.
The government has offered unprecedented support for businesses during Covid. Even so, pandemic-related economic shocks and the accompanying uncertainty have chilled business investment. This super-deduction will encourage firms to invest in productivity-enhancing plant and machinery assets that will help them grow, and to make those investments now.
If you want to learn more about the scheme, the first wave of information is available here: www.gov.uk/guidance/super-deduction
See the for more information.
https://www.zerohomebills.com/how-to-fund-a-solar-project-with-no-upfront-cost-in-the-uk/