From the 1st of April to the end of March 2023, companies can claim 130% capital allowances on qualifying new machinery which includes car parking lifts and car lifts. This ‘super-deduction’ effectively means that for companies paying corporation tax at 19%, for every £100,000 they spend on a variety of assets they get a £24,700 reduction in their tax liability.

 

How does it work?

If you buy a new excavator for £100,000, that capital expenditure x 130% equals a £130,000 deduction from taxable profits. Multiply this by the current rate of corporation tax (19%) and you get a £24,700 reduction in the company tax bill.

The ‘super deduction’ doesn’t apply to used assets, but companies can still apply their standard 100% Annual Investment Allowance on purchases of up to £1m made before the 31st December 2021. This would give a £19,000 tax deduction on every £100,000 spent.

If you need to increase your car parking or storage with car parking lifts, the super deduction rate will make it much more affordable.

Check out the government information page here.