Save an extra 6% Tax relief on your fire & security systems

    The Super Deduction Tax Rate scheme is a new incentive for businesses to bring planned technology system investments forward following the COVID pandemic.

    Until April 2023 you can now get 25% tax deducted as a percentage of the original price of your fire or security system purchase.

    Avigilon CCTV

    So, how does it work?

    Any company spending money on plant and machinery investment between 1st April 2021 and the end of March 2023 can claim 130% capital allowances.

    Capital allowances are claimed on capital expenditure - any expense you make for your business that’s classed as a long-term investment. Think: equipment, IT technology, property, fire and security systems.

    The Super Deduction rate is a cost saver for businesses. It gives 100% tax allowance of the expenditure in the first year, and an extra 30% allowance against taxable profits, making your purchase nearly 6% cheaper overall after tax.

    What Counts as Plant & Machinery?

    If your purchase falls into any of these categories, it can be classed as Plant & Machinery, meaning you can claim capital allowance.

    • Any technology kept in the business (including CCTV, Fire Alarms and Video Conferencing Systems)
    • The price of plant and machinery demolition 
    • ‘Integral’ building features (lighting, cold water, heating, lifts, escalators, solar shading etc)
    • Essential fitted kitchens and bathrooms 
    • Other plant and machinery installations - excluding maintenance and repair. 
    cctv and cyber security featured
    smart-cctv-Jul-28-2020-08-05-58-37-PM

    What Doesn't Counts as Plant & Machinery?

    By law, the following items are not considered as plant and machinery and are excluded from capital allowance claims.

    • Entertainment purchases (karaoke machine, pool table, dart board)
    • Property, land and structures like bridges and roads
    • Buildings, doors, gates, shutters, mains water and gas systems
    • Leased items

    What are capital allowances?

    • Capital allowances let taxpayers write off the cost of certain capital assets against taxable income. They take the place of accounting depreciation, which is not normally tax deductible. Businesses deduct capital allowances when computing their taxable profits.
    • In translating its accounting profits into taxable profits, a business is usually required to ‘add back’ any depreciation, but can instead deduct capital allowances. For example, a corporation tax paying company with accounting profits of £1,000, depreciation expense of £200 and total capital allowance claims of £300 would make the following adjustment:
    o Add £200 (depreciation expense) to £1,000 (accounting profits) = £1,200
    o Deduct £300 (capital allowances) from £1,200 = £900 (taxable profits)
    o Apply the appropriate tax rate, e.g. corporation tax at 19%: £900 x 19% = £171 tax due
    • The two main types of capital allowances are:
    o Writing Down Allowances (WDAs) for plant & machinery - covering most capital equipment used in a trade; and
    o Structures and Buildings Allowances (SBA) - covering the construction and renovation of non-residential structures and buildings.
    • The 130% super-deduction and 50% first-year allowance are generous brand new capital allowances for investments in plant and machinery assets. Both will allow investing companies to lower their corporation tax bills.

    Can I claim the Super Deduction Rate on my New CCTV or Fire Alarm System?

    Yes. As long as the system is purchased, rather than leased, you can absolutely claim tax relief on a new CCTV system or Fire Alarm.

    The Super Deduction Rate of Relief treats your business as though it has spent 30% increased capital expenditure. Therefore, if you spend £10,000 on a brand new CCTV system, the government will treat it as though you’ve spent £13,000. 19% of £13,000 is £2,470 of tax relief, almost 25%, whereas without the scheme, the tax relief is £1,900 - meaning the gain is 6% (£570).

    Note: we are not tax advisors and this article was correct to our knowledge at the time of publish. Always seek advice from a qualified professional.

    Make the most of the Super Deduction Rate of Relief and level-up your business security today.

    Get in touch with our expert installers for a quote.

    Submit the below form and we will get back to you shortly. 


    Featured Case Study

    Draper Tools

    Draper Tools

     

    Designing and installing a fire protection and very early smoke detection systems for a 100,000 square ft warehouse with very......

    Latest News

    CCTV Video Analytics: Everything you Need to Know

    CCTV Video Analytics: Everything you Need to Know

    May 12, 2022

    Every building faces its own unique security challenges. From out-of-hours cleaners to blind spots and hard-to-reach zones; there’s simply no......

    CCTV Installations: 4 Final Considerations

    CCTV Installations: 4 Final Considerations

    May 06, 2022

    Businesses and homeowners of today are relying on surveillance systems to keep their property and assets secure. In fact, there are now an estimated......

    CCTV and the Law: The Legal Considerations

    CCTV and the Law: The Legal Considerations

    November 29, 2021

    CCTV cameras. They’ve quickly become one of the most integral security solutions for home and business owners the world over. In fact, there are an......

    Cloud CCTV: What can it do for me?

    Cloud CCTV: What can it do for me?

    October 28, 2021

    Security systems have come a long way since the days of heavily-wired, monochrome cameras and titanic racks of VCRs requiring daily tape changes......

    Is it time to upgrade my CCTV?

    Is it time to upgrade my CCTV?

    September 07, 2021

    Has it been several years since you originally installed your CCTV system? If so, you may be wondering whether it’s time for an upgrade....

    Cyber Security and CCTV

    Cyber Security and CCTV

    August 17, 2021

    When considering which CCTV cameras and systems to install, security is paramount. ...

    CCTV & Access Control: Everything you need to know

    CCTV & Access Control: Everything you need to know

    August 05, 2021

    Businesses are starting to rethink their security strategies thanks to new technology. This is especially true when it comes to CCTV and access......

    Can home security cameras be hacked?

    Can home security cameras be hacked?

    July 06, 2021

    With homeowners investing more in their properties, there is a growing need for tighter home security measures.Home CCTV cameras are the cornerstone......

    Everything you need to know about Cloud CCTV Storage

    Everything you need to know about Cloud CCTV Storage

    May 25, 2021

    Jump To Why choose cloud CCTV storage?  How do I store CCTV footage in the cloud?  How much does cloud CCTV storage cost?  Is cloud CCTV storage......

    Getting Clever with CCTV

    Getting Clever with CCTV

    October 23, 2020

    Origins of CCTV Since its origin in the 1940s, CCTV has proven to be a valuable tool in the fight against crime and antisocial behaviour. Along with......