Super-Deduction Capital Allowance on Cleaning Equipment

Commercial cleaning equipment purchases can qualify for 130% first year capital allowance

Many businesses are investing in new commercial cleaning equipment as part of their updated cleaning and hygiene procedures introduced following the COVID-19 pandemic.

Effective and efficient cleaning equipment is always a good investment, but did you know that from 1st April 2021 to 31st March 2023, limited companies are able to claim a 130% super-deduction capital allowance, which can reduce their tax bill by up to 25p for every £1 invested in qualifying plant and machinery – including cleaning equipment.

The super-deduction capital allowance has been introduced by the government to support UK businesses and encourage investment in equipment that will help them to grow and develop their businesses. You can read the UK Government guidance here.

The new allowance is available alongside the ongoing Annual Investment Allowance (AIA) which already gives 100% relief for costs of qualifying plant and machinery in the tax year of purchase. For example, a business buying a floor scrubber dryer for £5000, will receive £1235 in Corporation Tax relief under the new ‘super-deduction’ tax relief (calculation: £5000 x 1.3 x 0.19). Under the AIA, the equivalent amount of corporation tax relief was ££950.

Budget 2021 Super Deduction explained

There is more information here from BDO and your accountant should be able to offer you specific advice.

Buy new cleaning equipment and get a tax break

The super-deduction is not available for the purchase of second-hand or previously owned items. B&G always have a range of special offer cleaning equipment though, so you can take advantage of our discounted prices, and claim additional tax relief for even greater savings.

Or for advice on the most suitable cleaning equipment for your needs, please give us a call.