Corporation Tax ‘Super-Deduction’ Opportunity on HPC products
You can now save even more money when buying HPC products. The 2021 Budget recently announced by the Chancellor introduced a comprehensive change to the UK’s Capital Allowances regime, drastically accelerating tax relief to encourage investment. This 'super deduction' is geared towards helping businesses by reducing their Corporation Tax bill.
Businesses buying HPC products now have an opportunity to benefit from this super-deduction which provides “allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances”. This is for qualifying expenditures incurred from 1 April 2021 up to and including 31 March 2023.
This record-breaking opportunity is here for you and equates to a significant cash windfall for individual businesses needing to invest in new air compressor systems. It will also help to bolster cash flow further down the line. Eligible HPC products include:
Working example of tax deduction on air compressors
If a company purchases a compressed air system from HPC for £5,000 and can claim the super deduction, the following example calculation would apply.
Spending £5,000 on an HPC compressor will mean a deduction of £6,500 (130% of the initial investment) when computing taxable profits. Deducting £6,500 from taxable profits will save you up to 19% or £1,235 on your corporation tax bill.
View our full range of air compressor systems or request pricing from your local HPC distributor to help you budget your next air move. There really is no better time to invest in the best air compressor systems for your business.
For more information on this opportunity please contact HPC at web.enquiry@hpcplc.co.uk or call 0848 430 0472.
Please note: This article does not provide any investment, financial, or tax advice. We advise businesses to consult with their own legal and financial advisors and tax experts.