Tax relief extension
02 January 2024
THE ANNOUNCEMENT in the recent Autumn Statement 2023 that the plant and machinery capital allowances scheme, introduced on a temporary basis in the March 2023 budget, is to be made permanent is being welcomed by loading and unloading equipment specialist Thorworld Industries.
Initially introduced as a replacement to the popular Super Deduction Scheme, the ‘full expensing’ tax relief scheme aims to boost investment by allowing businesses to claim a 100% upfront tax deduction on certain plant and machinery purchases.
Under full expensing, this means that for every pound a company invests, their taxes are cut by up to 25p, and there is no limit on the value of the plant or machinery being invested in.
Qualifying plant and equipment must be unused and is defined as any tangible capital assets used in the course of a business, exempting land or buildings. Container ramps, loading platforms and dock levellers are a few examples that qualify.
Thorworld Industries financial director Brendan Wilson, says: “Making the scheme permanent adds an additional layer of stability and certainty which in turn makes it easier for businesses to plan future capital expenditure.
“Historically, the UK has struggled with internal investment, which is often a bottleneck to growth for individual businesses. We are highly pleased with the announcement and thoroughly hope that companies will make full use of the scheme.”
For more information, visit www.thorworld.co.uk