There's never been a better time to invest in a new lower energy use compressor, because if you purchase before March 31st, 2023 – you'll get 130% super-deduction capital allowance.

New compressors qualify for 130% super-deduction capital allowance

Most tangible capital assets used in the course of a business are considered plant and machinery for the purposes of claiming capital allowances. There is not an exhaustive list of plant and machinery assets, but compressors are specifically mentioned in the example list of capital equipment in the UK Government Fact Sheet.

What will you be able to claim back?

• 130% super-deduction capital allowance on qualifying plant and machinery investments
• 50% first-year allowance for qualifying special rate assets

The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring the UK capital allowances regime is amongst the worlds’ most competitive. It means there's never been a better time to invest in a new compressed air solution.

What does this really mean?

It means you can reduce your corporation tax bill by up to 130% of any investment that you make in the next two years, including investment in new machinery such as air compressors.

Example – if you purchased a £20,000 compressor

"If you invest £20,000 in a new air compressor, you will be able to deduct £26,000 from your tax bill. This means, your accounts team can deduct 130% of your initial investment (£20,000) when calculating your taxable businesses profits. The super-deduction is an enhanced first-year allowance providing an allowance exceeding the cost of the asset. It makes investing now very attractive, helping save tax liabilities and aid cashflow."

Annthea Fryer Finance and HR Director  Cambs Compressors

130% Capital Plant Incentive Scheme

There really has never been a better time to look to improve your on-site facilities by investing in new compressed air solutions.