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Year-end Approaching?… Act Quickly to Benefit from these Government Incentives

Published: 13th January 2022
Author: anthony cogswell

Did you know that engineering companies can benefit from claiming increased capital allowances on their (New) CNC machine tool investments up until the end of March 2023?

Super Deduction

Under the super-deduction, for every pound a company invests, their taxes are cut by up to* 25p.

*It is advisable to seek financial advice from your accountant or tax advisor.

Previous System
With Super-deduction
A company spends £100,000 on qualifying assets
The same company spends £100,000 on qualifying assets
Deducts £10,000 using the AIA in year 1, leaving £90,000
Deducts £130,000 using the super-deduction in year 1
Deducts £16,200 using WDAs at 18%
Receives a tax saving of 19% x £130,000  = £24,700
Deductions total £26,200 – and a tax saving of 19% x £26,200 = £4,978

Further information on the the Super Deduction can be found here Super-deduction – GOV.UK (www.gov.uk)

Recovery Loan Scheme

From 1st January 2022, The Recovery Loan Scheme will allow small and medium sized enterprises to access loans of up to £2m to support their investments and growth plans.

This scheme will run until 30th June 2022.

For further details on the Recovery Loan Scheme, please visit Recovery Loan Scheme – GOV.UK (www.gov.uk)

Ward CNC Finance may be able to help you pay for your next machine investment – Please ask for further details.

Last Updated: March 11, 2024