What is the 130% super-deduction?
From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:
- a 130% super-deduction capital allowance on qualifying plant and machinery investments
- a 50% first-year allowance for qualifying special rate assets
The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring the UK capital allowances regime is amongst the world’s most competitive
This measure is designed to stimulate business investment. It does so by increasing the incentive to invest in plant and machinery by offering higher rates of relief than were previously available.
The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest
How does this apply to a new Cellar Cooling?
In short, the super deduction will enable companies to cut their tax bill by up to 25p for every £1 they invest, so for any cellar cooling system you invent in, in theory, you can reclaim 25% of the cost against tax in the first year*
Capital allowances allow businesses to write off the costs of tangible capital assets, such as plant or machinery, against their taxable income. They take the place of commercial depreciation, which is not an allowable tax deduction.
First-year allowances allow enhanced rates of relief for certain plant and machinery investments, providing claims are made in the period the expenditure is incurred. The super-deduction is an enhanced first-year allowance providing an allowance exceeding the cost of the asset
Further information can be found on the government's website HERE
* Please note this article does not form the basis of financial or tax advice, For further information, we highly encourage you to talk to your accountant
Take advantage - Give us a call today!
Starting from as low as £1595 + VAT, and now with an incentive from the taxman, it is a fantastic time to invest in a new cellar cooling system for your business. Whether you need to replace an ageing system or require a new system for a new project, we are here to help.
All systems are guaranteed for 3 years, are professionally installed inline with FGas regulations.
We carry out installs across the country, so whether you are in Cornwall or the Highlands, we are ready and waiting!
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