The UK government has recently provided businesses with a terrific mixture of cost-cost cutting incentives that mean there has never been a better time for forward-thinking companies to invest in new machinery.
One such incentive is the super-deduction tax break which is the most attractive tax incentive for business investment ever offered by a British government. It could cut your tax bill by almost a quarter and save you thousands when purchasing new plant equipment and machinery.
Put simply, with the new super-deduction allowance companies can claim back up to 25p for every pound invested in ‘qualifying’ machinery and equipment for two years from 1 April 2021 until 31 March 2023.
From Chancellor Rishi Sunak’s perspective, it’s a “direct way to help businesses invest” and “drive growth in the economy”
The driving force behind the new incentive was the fall in business investment between 2019 and 2020 which saw a massive 11.6% drop. The new incentive makes the UK’s capital allowance regime more competitive internationally while promoting economic growth and countering the cyclical growth patterns business often sees. It makes the UK’s capital allowance value the highest in the OECD, raising the UK from the thirtieth to first in the league table.
A cocktail of tempting incentives
In addition, there is also an unlimited annual investment allowance. This provides 100% relief for plant and machinery investments up to the highest ever £1 million threshold and is available until 31 December 2021. This is accompanied by the UK’s favourable exchange rates and record-low interest rates.
At AMH Material Handling we have seen a spike in sales enquiries since the announcement and we expect the demand for new machinery to rise over the next 12 months. These incentives are a positive step for our industry, especially at a time when we are likely to see a continued boom in warehouse development due to the significant growth in e-commerce.
Looking to take advantage and improve processes within your warehouse – partner with AMH Material Handling
One of our key strengths is our ability to visit sites and interrogate performance to produce innovative solutions to improve processes. Whether it is looking at improving or expanding your current operation or a complete system for a new facility, we will get to grips with the core of your business to ensure a solution is tailored to meet your exact needs.
As well as design and installation solutions, we also provide a full range of maintenance and servicing plans. This allows us to offer continuous care, at a level to suit your needs, thus ensuring your system performs its best throughout its lifespan.
To discuss how we can help you improve processes within your warehouse facility and take advantage of the temporary tax breaks contact AMH Material Handling on 0121 550 4342 or email firstname.lastname@example.org
A detailed factsheet about the super-deduction tax break and annual investment allowance can be found here: https://www.gov.uk/guidance/super-deduction