130% tax allowance on capital purchases

[Chae1]

What are your thoughts on this? Is it encouraging you to buy new instead of used machines?

On a combine at 250k its bound to be quite a saving.

 

[ollandroverman]

Only if you are earning enough to pay tax!

 

[Johnnyboxer]

What are your thoughts on this?

Is it encouraging you to buy new instead of used machines?

On a combine at 250k its bound to be quite a saving.

******Only Ltd Co are eligible ****
Designed to offset increases to Corporation Tax in 2023

Partnerships and Sole Traders are excluded

Brand new goods only

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/967202/Super_deduction_factsheet.pdf

 

[Chae1]

Thanks. I didn't realise that but our contracting business is Limited and anything would be purchased through it.

 

[farmerdan7618]

Limited company only, brand new stuff only. Designed to give tax relief at the 25% rate that is coming in 2023 so investment isn't halted until then.
Some good opportunities with grain stores, silage clamps, parlours etc to get good tax relief, provided an investment was going to be made on commercial grounds anyway

 

[Chae1]

Limited company only, brand new stuff only. Designed to give tax relief at the 25% rate that is coming in 2023 so investment isn't halted until then.
Some good opportunities with grain stores, silage clamps, parlours etc to get good tax relief, provided an investment was going to be made on commercial grounds anyway

Are buildings eligible?

Building a dutch barn this year. Would it count?

 

[farmerdan7618]

Are buildings eligible?

Building a dutch barn this year. Would it count?

Generally buildings not eligible, some specific examples such as those above can get it. Unlikely on a Dutch barn I would say, unless it is a dutch barn grain store.

 

[Chae1]

Generally buildings not eligible, some specific examples such as those above can get it. Unlikely on a Dutch barn I would say, unless it is a dutch barn grain store.

No it's just for straw. Floor won't be concreted.

 

[farmerdan7618]

No it's just for straw. Floor won't be concreted.

3% write down as structures and buildings allowance on that.

 

[Friesianfan]

Limited company only, brand new stuff only. Designed to give tax relief at the 25% rate that is coming in 2023 so investment isn't halted until then.
Some good opportunities with grain stores, silage clamps, parlours etc to get good tax relief, provided an investment was going to be made on commercial grounds anyway

Thanks Dan. Cubicle sheds?

 

[jondear]

Limited company only, brand new stuff only. Designed to give tax relief at the 25% rate that is coming in 2023 so investment isn't halted until then.
Some good opportunities with grain stores, silage clamps, parlours etc to get good tax relief, provided an investment was going to be made on commercial grounds anyway

What's the reason for limited only .What about slurry storage .? Thanks

 

[farmerdan7618]

Thanks Dan. Cubicle sheds?

Cubicle sheds need very careful invoicing, available on the majority of the internals, but only the 3% on the structure.

 

[farmerdan7618]

What's the reason for limited only .What about slurry storage .? Thanks

Limited got the tax rise in the budget, so could have stopped investment, tax rates unchanged for partnership and sole traders.

Slurry storage is ok, but must be brand new, so extension of a lagoon is a very grey area.

 

[Chae1]

Limited got the tax rise in the budget, so could have stopped investment, tax rates unchanged for partnership and sole traders.

Slurry storage is ok, but must be brand new, so extension of a lagoon is a very grey area.

Excuse my ignorance but what was tax rate risen to for limited companies?

 

[farmerdan7618]

Excuse my ignorance but what was tax rate risen to for limited companies?

Will be 25% tax for companies making over £250k profit from 1 April 2023. Will stay at 19% for those making £50k or less, and a horrible scaled rate for those in between.

 

[Johnnyboxer]

Thanks. I didn't realise that but our contracting business is Limited and anything would be purchased through it.

Good [emoji106][emoji636]

 

[Johnnyboxer]

What's the reason for limited only
Thanks

To offset the new higher rate of Corporation Tax., coming in 2023

 

[mf7480]

Will be 25% tax for companies making over £250k profit from 1 April 2023. Will stay at 19% for those making £50k or less, and a horrible scaled rate for those in between.

say a company makes £250k, is the first £50k at 19%, and everything in between on the sliding scale, or is the whole lot 25%?

 

[farmerdan7618]

say a company makes £250k, is the first £50k at 19%, and everything in between on the sliding scale, or is the whole lot 25%?

It's the first £50k at 19%, then the next £200k on the sliding scale, and anything above that at 25%.

At £250k, the sliding scale works so the whole lot would be 25% tax.

 

[Bossfarmer]

so in a ltd company if you made say 400k a year youd pay fully 25% on that? so 100k tax