Super Deduction Savings
As previously mentioned, the Super Deduction allowance gives your company the opportunity to offset 130% of your capital purchase amount, against your taxable income. To help demonstrate how this cost saving can translate to patient handling equipment, we will illustrate an example of a purchase of a new assisted bath at the cost of £10,000. For this purchase, your care facility’s savings would be as follows.
The purchase cost for a new assisted bath is set at £10,000. The Super Deduction allowance of 130% would allow you to claim £13,000 against your taxable profit. Deducting the £13,000 from taxable profits, can save the company up to 19% in corporation tax which equates to a 24.7% saving off the original purchase price.
With this saving, the cost of the new £10,000 bath has really cost your facility only £7,530 (£10,000 minus the tax saving of £2,470).