The FEA has welcomed the Budget’s ‘super deduction’ tax incentive because it supports the association’s Net Zero Carbon plans.
Emma Brooks, chair of FEA Net Zero Carbon Forum, confirmed that the association had checked with government information and that it does apply to foodservice operators buying commercial catering equipment – so long as the appliance is new.
In addition, a 50% first-year capital allowance will be available for qualifying special-rate assets, giving a further incentive to buy new, more efficient equipment – and helping to meet the industry’s carbon reduction targets.
Meanwhile, the Chancellor announced a consultation on R&D tax credits for manufacturers. FEA is hoping that this, too, can be used to back its Net Zero Carbon plan for the foodservice industry.
Brooks said: “One of our key points was to incentivise manufacturers to develop more energy efficient appliances. We will be taking part in the consultation with a view to including energy efficiency as a key criterion in the R&D tax credit scheme.”
One concern for FEA was that, with more second-hand equipment on the market, foodservice operators buying an appliance might opt for that rather than a new, energy efficient model. Brooks believes: “The super deduction incentive is great news for the Net Zero Carbon plan, because there is no incentive to choose second-hand when the buyer gets a 130% tax credit on new equipment
“Meeting the hospitality industry’s carbon reduction targets is a huge challenge. The proposals outlined in the Budget are a big step forward and endorse key elements that the FEA has requested. This is very good news.”