Following the UK Government's 2023 Budget announcement on Capital Allowances, it's easier than ever to save money when buying HPC products.
While the "Super Deduction" ends on March 31st 2023, the UK Government has announced the introduction of "Full Expensing" from 1st April 2023 until 31st March 2026 (with a view to potentially making this permanent).
What does this mean?
Under this scheme, companies will be able to claim 100% of their first year's capital allowances on qualifying main rate plant and machinery purchases against taxable income in the year of investment.
This includes HPC KAESER Compressed Air Equipment, such as:
"This measure is designed to stimulate business investment in plant and machinery by temporarily increasing the tax relief available in the accounting period the expenditure is incurred," the Government said on its website.
"The amount of expenditure that can qualify for this measure is uncapped, which means that the more that is invested, the greater the potential tax savings.”
Working example of tax deduction on air compressors
If a company purchases a compressed air system from HPC for £50,000 and can claim the full expensing deduction, the following calculation would apply:
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.