We're in the tax return season, so remember to claim Investment Boost when you complete your tax return.
Investment Boost is a tax incentive (a form of accelerated depreciation) that allows you to claim 20% deductions for the costs of new business assets.
It does not change the total value of deductions you claim over the life of an asset. However, it does mean you can claim a greater deduction in the first year. This means you pay less tax in that year.
Maybe you have recently bought an electric or hybrid vehicle for your business as fuel prices have risen. You can claim 20% deductions for the cost of that vehicle.
Other examples of depreciable business assets include new commercial and industrial buildings, machinery, technology and equipment.
For more examples, check out Inland Revenue's helpful guide.
How to claim
Make sure you do the following when completing your IR10 – Financial Statements Summary:
- Record any Investment Boost claims in Box 52.
- Record the total value of assets you’ve claimed Investment Boost for in Box 60.
You can find more information about Investment Boost on Inland Revenue's website.