Super Deduction Explained

Launched in the 2021 Budget, the Super Deduction is part of a two-year initiative designed to encourage investment and promote economic growth. Up until 31st March 2023, businesses investing in qualifying new equipment can still offset the cost against tax, plus an additional 30%.

With a focus on productivity and efficiency, the range of eligible equipment includes process cooling plant, such as chiller units. Under the scheme, corporation tax is effectively cut by up to 25 pence for every £1 invested and there is no limit or cap on the amount of capital investment that can qualify.

Here’s an example of how Super Deduction works in practice:

  • Company purchases £150,000 of qualifying assets.
  • This enables them to deduct £200,000 (130% of the investment) from taxable profits.
  • Deducting £200,000 from taxable profits will save the company up to 19% of that sum on its corporation tax bill – which is £38,000.

On top of these savings, upgrading to new equipment allows businesses to benefit from the latest, energy efficient, technology. For example, our Aqua Pro chiller range operates on R454B refrigerant as standard and offers fully integrated free cooling. Incorporating free cooling into your operation can reduce annual energy usage – and associated energy bills – by 80%+, when compared to a traditional refrigeration system.

So, not only can you save on tax, but you can also benefit from additional energy savings whilst reducing carbon impact and improving operational efficiency! The catch? There really isn’t one, although equipment does need to be purchased before 31st March 2023.

For more information on Super Deduction and qualifying equipment call the team on 0333 004 4433 or email


Super Deduction Explained 2023