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.
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