Now is the time to invest in a new compressor. New super deduction tax to ease capital investment purchases
Rishi Sunak, Chancellor of the Exchequer, announced in last week’s budget a new super deduction tax break, designed to help companies looking to increase their productivity by investing in new capital equipment.
The announcement which has been welcomed by many, allows companies looking to purchase equipment between 1st April 2021 and 31st March 2023 to claim a 130% super deduction capital allowance on qualifying plant and machinery investments and a 50% first year allowance for special rate assets from a qualifying list.
In short, under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p on capital equipment such as compressors, which is specified as just one of the examples on the plant and machinery capital asset list.
Phil Harris, CEO at Vert said “We welcome this latest announcement which is a great opportunity for businesses to bring forward planned investments in equipment allowing companies to upgrade their current compressors whilst minimising any tax burden. Installing new compressors can help to lift the productivity and efficiency levels of businesses so that they are ready to hit the ground running when the economy bounces back”.
Click here to be taken through to HM Treasury Super-deduction tax factsheet
N.B. This article is not intended to provide tax advice or investment advice. Companies should always consult their own independent legal or financial advisors.