Unlocking the Super Tax Deduction through the Recovery Loan Scheme

This week we would like to draw your attention back to the Recovery Loan and how by using the Recovery Loan you could release the Super Tax deduction – announced in the Spring Budget 2021.

The recovery loan as we know, stands out for its low rates, no personal guarantees and no early settlement fees and as lending goes, we often have to jump through quite a few hoops before we can secure funding.

But, the recovery loan scheme is a new and relatively easy solution for a quick cash boost, but hurry as it will only be available until 30th June 2022.

Even if you don’t particularly need the boost to come out of COVID recovery, this loan could be a great solution to build and grow your company. which brings us on to the Super Deduction tax relief.

The Super Deduction was introduced back in spring 2021 and means for every pound you spend on eligible assets you’ll receive 25p relief back.

Eligible assets can include, but are not limited to:

By using the super deduction you could be reducing your taxable profits by 130%. This significant relief could contribute towards the cost of financing these new resources, enabling you to scale up much faster than would previously have been possible.

For example:

An investment of £100,000 in new equipment will result in a superdeduction of £130,000 against taxable profits. In this example, applying the current corporation tax rate of 19%, you would achieve a substantial saving of £24,700.

So, if you haven’t got the funds to invest right now you could always look at the Recovery Loan Scheme and take advantage of the low rates and no early settlement fees!

Beresfords are now able to submit applications for the Recovery Loan and other forms of funding, to find out more contact us on 01303 850992. or email us on mail@beresfordsaccountants.com