From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets, including industrial freezers, could be eligible to claim enhanced tax relief on capital expenditure thereby reducing their taxable profits for the period.
The new temporary Capital Allowances’ relief offers:
- A 130% super-deduction capital allowance on qualifying plant and machinery investments
- A 50% first-year allowance for qualifying special rate assets
- Annual Investment Allowance (AIA) providing 100% relief for plant and machinery investments up to its highest ever £1 million threshold, until 31 December 2021
This means that now is the perfect time to invest in new freezing and chilling machinery. Doing so will allow you to benefit from the super-deduction, and supercharge the efficiency of your machinery assets for future growth.
The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest, making the UK capital allowances’ regime amongst the world’s most competitive.
“The new super-deduction is a real win-win situation for companies looking to invest in new machinery in the near future”, says Rob Thomson, Tax Director at Grant Thornton. “Investing now means companies can benefit from cutting edge technology that are reliable assets for the future, while benefiting from a reduction in their tax bill”.
This is just one of the ways that the government is continuing to support businesses during, and as we emerge from, Covid-19. As a spiral cooling systems specialist, Korutek’s new systems qualify for the super-deduction. If you’re interested in finding out more about how our machinery can help your business to grow in the post-pandemic landscape, get in touch with us today.
To find out more about the super-deduction, or to read the full factsheet, visit the .GOV website, or contact Rob Thomson, Tax Director at Grant Thornton.
