Claim 130% Tax Relief on 3D Printing Equipment

super deduction

Now is the best time to invest in additive manufacturing following the launch of the UK Government’s “Super Deduction Scheme” — a temporary tax break on investments in new plant and machinery for companies who pay corporation tax.

What is it?

The super-deduction scheme offers 130% first-year relief on qualifying main rate plant and machinery investments until 31 March 2023 for companies.

This is significantly higher than the previous 18% writing down allowance for investment in main rate plant and machinery.

The net result of this is that under the scheme, for every pound a company invests in qualifying equipment, their taxes will be cut by up to 25p.

This saving is significant because it offsets the upcoming increase in corporation tax from 19% to 25% from April 2023. This will apply to companies with more than £50,000 in profit (those with fewer profits will pay corporation tax at the current 19% rate).

You can find out more at the super-deduction factsheet.

A working example

If you spend £100,000 on 3D printers you will be able to deduct £130,000 (130% of your investment) against your taxable profits (corporation tax).

Here’s another example – if you spend £10,608.00 on the Ultimaker S5 Pro Bundle, you can deduct £13,790.4 against your taxable profits.

With the current corporation tax rate of 19%, this means your corporation tax bill will be cut by 25p for every £1 of qualifying spend.

Who can claim super-deduction?

The super-deduction allowance is only available to companies based in the UK who pay corporation tax. Individuals, partnerships and LLPs are not eligible.

The allowance has been launched to stimulate investment in new technologies and make the UK’s capital allowance regime more internationally competitive.

However, it’s important to note that the super-deduction tax break is time-limited to 31 March 2023. It won’t be around forever. If you want to use it to invest in 3D printing in a tax-efficient way, we recommend researching your options now.

Investing in additive manufacturing

3D printing has the potential to unlock new applications and business opportunities. It can not only solve production and design challenges, but also replace traditional manufacturing techniques like injection moulding and CNC machining.

For example, the Markforged X7 produces composite parts in a wide range of materials, including carbon fibre, Kevlar and high-temp fibreglass. This 3D printer produces composite parts that can replace machined metal parts.

Then there’s the Formlabs Form 3B. This 3D printer produces biocompatible dental models and prototypes. Dentists use it to manufacture dental models in-house, including biocompatible surgical guides, splints, fixed patterns and dentures.

For engineering and design, another great choice is the Ultimaker S3. This FFF desktop 3D printer produces parts in a wide range of engineering and performance thermoplastics. It’s suitable for producing functional prototypes and end-use parts.

At Additive-X, we are a leading UK partner to the biggest names in 3D printing, including Ultimaker, Markforged, Formlabs and HP. We will size and specify the correct 3D printers for your budget and use case and provide industry-leading support.

The super-deduction tax break has opened up a lucrative opportunity to invest in additive manufacturing. Give us a call on 01765 694 007 to discuss 3D printing solutions with our experts. Alternatively, email sales@additive-x.com.