We would like to introduce Nicola our Finance Director, who has detailed some important information below regarding the super-deduction capital allowance.
If you’re planning to install a cold room on your premises, you may not be aware that you could claim capital allowances to relieve the burden of tax on your business, as many cold storage rooms fulfil the definitions of “plant and machinery” established by HMRC.
The super-deduction capital allowance initiative announced by the Chancellor in the Spring 2021 budget provides businesses with the confidence to invest cash in capital expenditure now rather than waiting, in this call to encourage those businesses that are able to invest and grow.
Under the scheme, companies investing in qualifying new plant and machinery assets from 1 April 2021 until 31 March 2023, will benefit from a 130% first-year capital allowance which would have ordinarily qualified for 18% relief, and a first year allowance of 50% on most new plant and machinery investments which would have ordinarily qualified for 6% relief.
Investing companies will also benefit from a 50% first-year allowance for qualifying special rate (including long life) assets.
This upfront super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest.
At MTCSS we can advise about the range of cold rooms available to ensure they meet the needs of your business, so feel free to get in touch with our team for more information.
Keep your eyes peeled for our article introducing Nicola and other members of the team soon.
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