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9 months left to claim your ‘Super deduction’ tax for Solar PV

By ineco | 20th June 2022

For capital expenditure incurred from 1st April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant machinery investments.

Investing in solar panels for your business can save you from paying as much tax under the government’s ‘Super deduction’ scheme, the scheme runs out in March 2023 leaving businesses just 9 months to take advantage of this offer.

The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest.

What is plant and machinery?

Almost all tangible capital assets used in the course of a business are considered plant and machinery, for the purposes of claiming capital allowances.

Why is the Government offering this tax deduction?

In 2021, due to the pandemic, levels of business investment fell significantly. The government introduced the “Super Deduction Tax” to encourage businesses to invest back into machinery and technology that will benefit productivity and sustainability, these measures can promote economic growth and counter business cycles. The idea is that the ‘super deduction’ will give companies a strong incentive to make additional investments and to bring planned investments forward

Between 1 April 2021 and 31 March 2023 companies can claim up to 130% of their Capital Allowances back from the government on qualifying investments. Solar PV is top of the list of qualifying investments.

This scheme is among the world’s most competitive and makes investing in solar energy very attractive.

To find out more about the benefits of solar for your business talk to us

For more in-depth information on the ‘Super Deduction’ tax as a whole, read the government’s  ‘Super deduction’ fact sheet