If you’re planning to install a new cold room on your business premises, you may not be aware that you could claim capital allowances to relieve the burden of tax on your business! This is because many cold rooms fulfil the definitions of “plant and machinery” established by HMRC.
MTCSS are here to help you understand everything you need to know about the scheme in place (which replaced super-deduction last year), that allows your business to benefit from a new cold room installation.
Qualifying Cold Room Solutions From 2023
Effective from 1st April 2023 to 31st March 2026, company expenditure on qualifying plant and machinery can claim:
- 100% first year allowance – EG, 100% of the cost from their profits straight away (FE) – rather than more slowly over the life of the asset.
- 50% first year allowance for qualifying special rate assets (a 3 year continuation on the previous scheme).
Similarly to the previous super-deduction scheme, FE also results in a 25p tax saving for every £1 invested (19% x 130% super-deduction rate = 25%). In some cases, the relief will be even greater, at 26.5%, if the company’s profits are between £50k and £250k.
Nicola Burston, Finance Director of MT Cold Storage Solutions said:
“With increases in corporation tax from April 23 to 25%, it is good to see support being offered to businesses, encouraging their decision to invest in MTCSS’s cold rooms. Whilst FE does not extend to individuals and partnerships, it is important to note these particular customers can still benefit from the Annual Investment Allowance (AIA), which will give them 100% capital allowances on qualifying expenditure”.
At MTCSS we can advise about the range of cold rooms available to ensure they meet the needs of your business, so please get in touch with our expert team if you’d like more information.
Email us at sales@mtcss.co.uk, call us on 01886 833 381 or fill in an enquiry form below! Our experts will be more than happy to discuss your requirements and answer any questions you may have.
