In the March budget, a new super-deduction was announced that will help to boost capital equipment expenditure and give businesses the opportunity to invest while cutting their tax bill
Announced by the Chancellor earlier this month, the super-deduction capital allowance will support businesses that want to make investments in qualifying plant and machinery equipment ranging from computer servers to vehicles and solar panels.
Coming into effect from the 1st April, the super-deduction will enable businesses to cut their tax bill by up to 25p for every £1 they invest in capital equipment.
This is good news for businesses that want to look at mid-term investments, upgrade their infrastructure and get a significant tax break on their purchases. As data security becomes important for businesses in a variety of sectors, the new super-deduction is set to help companies upgrade their IT infrastructure, and invest in more data security equipment.
For manufacturers, the super-deduction is also helping them ramp up production on specialist equipment within a wide range of industries including IT and cybersecurity. Verity Systems, a supplier of hard drive degaussers and hard drive destroyers is already seeing early demand ahead of April for capital equipment. Supplying hard drive erasure solutions to businesses that want to fully erase their data, the UK based manufacturer of data security solutions is set to benefit from the new super-deduction policy.
Speaking with The Britonian, David Tucker, President for Verity Systems said, “The super-deduction capital allowance will enable our customers to potentially benefit from added tax savings, and we’re already seeing an increase in demand for data security devices in the UK. For businesses and organisations that want to invest in equipment that safely destroys data, our latest range of data degaussers and hard drive destroyers can be ordered online or directly through our website.”
With a forecasted rise in capital equipment expenditures and a faster recovery, the UK’s growth prospects were recently upgraded by the OECD, projecting a 5.1% economic expansion. This also follows a successful national vaccine campaign with more than 30% of Brits having received their first dose, improving business optimism that a recovery is just months away.