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Chancellor announced a 130% Tax Credit for All Business Investment in Plant & Machinery in Spring Budget

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Did you know that LED Lighting is considered plant and machinery and therefore it is eligible for this tax relief announced in the recent budget?  There are no restrictions on this claim for size or type of business.

 

The savings are greater still, as installing LED Lighting already reduces your lighting costs by 60-70%, and the savings you would obtain via the tax relief will only increase the saving a business can make. In addition, there is a reduction in long term maintenance cost, as LEDs have a working life of 15-20 years, along with a 5–7 year warranty.

 

The only restriction is, as always, the amount of annual investment allowance you are allowed.

 

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There are two types of capital allowance claims:

 

  • Annual investment allowance - claim total cost against profits in the year incurred.

 

  • Written down allowance - claim cost against profits across several years in the asset’s useful life.

 

The AIA allowance had temporarily increased to £1 million between 1 January 2019 and 31 December 2020 and reverts to £200,000 from 1 January 2021.

 

More information can be found here:

 

https://link.edgepilot.com/s/4bd194cd/walDWla0ekKSsVhzWcCA7Q?u=https://www.gov.uk/government/publications/new-temporary-tax-reliefs-on-qualifying-capital-asset-investments-from-1-april-2021/new-temporary-tax-reliefs-on-qualifying-capital-asset-investments-from-1-april-2021

 

 

To discuss this further, please call Stephen Marshall, Director at LED-UK Lighting Ltd on 01424 222200 or email enquiries@led-uk.co.uk Steve is happy to have a no-obligation chat to share his understanding of the above and can also provide a FREE site survey for your business should you wish to proceed.

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