Capitalise on Super-Deduction

Get the best of both worlds: Cash Flow + Tax Relief!

We all know how important cash flow management is during a crisis but how do you help realise cash flow for your customers? With finance products from Exclusive Networks and the recent super-deduction you can give your customers the best of both worlds.

As part of the Budget 2021, the Chancellor, Rishi Sunak, announced a new capital allowance ‘super-deduction’. The hope is that these will provide companies a stronger incentive to make qualifying investments and bring forward planned investments for future years.

What level of super-deduction allowance can be claimed?
Companies can claim a super-deduction by writing off 130% of qualifying expenditure on new assets from 1 April 2021 for two years. This would usually qualify for 18% writing down allowances.

For example, if a company spends £100,000 on computer equipment then the company can claim a deduction of £130,000 against taxable profits. With a corporation tax rate of 19%, this will lead to tax bills being cut by nearly 25p for every £1 of qualifying spend.

What about finance?
The super-deduction is available to equipment acquired on hire purchase (HP) facility. The HP contract must provide that ownership of the equipment will pass to the hirer on the exercise of an option or another specified event. Also, the asset must be in use at the end of the relevant accounting period and be accounted for as a finance lease in the accounts (i.e. capitalised).

In the case of finance leases which do not meet the conditions of HP, capital allowances (including super-deductions) are not available. Instead, tax relief is given over the period of the lease.

It’s time to capitalise
At Exclusive Networks we offer a wide range of Finance Solutions to help cater for you and your customer’s needs. Speak with us today so we can help you meet those needs and ensure your customers are getting the best of both worlds.

Please reach out to your Exclusive Networks Account Manager or speak with our Financing team for further information at

*please note we are not financial advisors and if you have accounting questions you should consult your financial advisor or accountant.