Capital Allowance “super-deduction” on office furniture

Does the Capital Allowance “super-deduction” apply to office furniture?

Capital Allowance “super-deduction” on office furniture

Budget2021 Capital Allowance “super-deduction” applies to office furniture

The answer is – YES!

We have been asked by a number of our customers for confirmation that the super-deduction announced in the budget 2021 does, for sure, apply to office furniture.

For the avoidance of any doubt click here for the super-deduction factsheet issued by HM Treasury, which lists “Office chairs and desks” specifically as examples of qualifying assets, on page two of the document.

So, for office furniture purchased between 1st April 2021 and 31st March 2023, limited companies can claim 130% super-deduction capital allowance, effectively reducing their tax bill by 24.7% of the amount they have invested in furniture (and other qualifying assets): that’s £24.70 for every £100 invested.

One caution: contracts entered into before 3rd March 2021 do not qualify, even if the expenditure was incurred after 1st April 2021.

Quite an incentive to invest in improving the office environment – and encouraging workers back into the office!