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Super deduction’ tax and first year rate allowance for Solar Panels

By ineco | 20th June 2022

Can you claim ‘super deduction’ tax of 130% for solar panels?

No, unfortunately not! However, you are able to claim the Special First Year Allowance of 50%

When a business can claim the special rate first-year allowance

On 1 December 2021, Bravo Ltd spends £10,000 on a solar panel for:

  • installation at its business premises
  • use in its business

In the accounting period ending 31 December 2021, they can claim the 50% special rate first-year allowance which equals £5,000 for this expenditure.

The remaining balance of expenditure, after deducting the special rate first-year allowance, is £5,000. This may be added to the special rate pool in the following accounting period and writing down allowances can be claimed.

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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 and Special first-year rate allowance, read the government’s  ‘Work out super deduction and first-year rate allowance