Huge savings on garage equipment thanks to government tax deduction scheme, V-Tech reports

The COVID-19 pandemic has left many workshops struggling to invest in new garage equipment.

However, in this year’s budget, Chancellor Rishi Sunak announced an amazing new scheme to enable automotive workshops to benefit from new garage equipment purchases and offset their tax liabilities.

In the past businesses have been able to claim capital allowances when they purchase their garage essentials.

The value of this garage equipment gets deducted from your profits meaning you will save money on your tax bill.

However, this new super deduction scheme is now even more attractive, allowing you to offset 130 per cent of the asset value against the taxable profit in that first year – that’s around a saving of 25p for every £1 you spend.

You’ll be able to claim this higher tax relief from now, right up until 31st March 2023.

It will cover many different businesses, industries, and sectors.

The great news is that it covers the automotive workshop industry but there are a few rules:

  • It only applies to UK businesses that are subject to corporation tax. Sole traders and partnerships are therefore not included.
  • Businesses that intend to keep the newly bought equipment
  • Purchases must be bought in cash, HP or through a loan from 01/04/2021 to 31/03/2023

For further information, select ‘more details’.

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