As part of the recent UK Budget, Chancellor of the Exchequer Rishi Sunak MP announced a new 130% capital allowance for businesses investing in qualifying plant and machinery. This ‘super-deduction’ is a very large rise from the current 18% rate.
For two years, beginning April 2021, companies can cut their tax bill by 25p for every pound they invest in new equipment. The budget also included a 50% first-year allowance for qualifying special rate assets, a rise from the previous 6%.
Mr Sunak said: “Business investment creates jobs, lifts growth, spurs innovation and drives productivity. […] Under the existing rules, a construction firm buying £10 million of new equipment could reduce their taxable income in the year they invest by £2.6 million. With the super-deduction they can now reduce it by £13 million.”
Hycontrol Managing Director Nigel Allen welcomed the new capital allowance rate, saying: “The new super-deduction is an excellent extra incentive for companies in the cement industry and beyond to bring their silo pressure monitoring and safety systems into the 21st century. There has never been a better opportunity for sites to upgrade to a fully automated, failsafe silo protection system that removes risk and vastly improves safety and efficiency on site. It’s a win-win for companies and employees.”
To discuss how comprehensive silo protection can benefit your site, call Hycontrol on 01527 406800.
