In the March budget the Chancellor, in an effort to stimulate business investment, announced temporary higher rates of tax reliefs on qualifying capital asset investments from April 1st.
If you have been considering investing in new machinery, this makes now the time.
General Description of the Measure: This measure will temporarily introduce increased reliefs for expenditure on plant and machinery. For qualifying expenditures incurred from 1 April 2021 up to and including 31 March 2023, companies can claim in the period of investment:
- a super-deduction providing allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances
- a first year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances
The new ‘super deduction’ is a welcome incentive for UK businesses, and will allow manufacturing companies to claim 130% of any qualifying plant and machinery investment as a capital allowance.
The COVID-19 pandemic curtailed major investment in many businesses, this scheme aims to kick-start productivity and help to drive business growth post-COVID-19.
As long as your investment is made within a two-year period starting 1 April 2021, manufacturers who were considering or planning investment into their plants and machinery are well placed to take advantage of this scheme.
Remember, Line Equipment can provide and install complete packaging lines, not just the bagger!