This month, Chris Oldfield, managing director of UNTHA UK, offers a guest blog on the topic of capital allowances…
“It seems you can’t open a newspaper or turn on the television these days, without stumbling across another general election update. With only a matter of weeks to go until the UK’s next prime minister is announced, talk on policies and plans is gathering pace.
Exactly who will come into power is, as yet, unknown. But one thing is for certain – the staggering £500,000 figure that organisations can draw down as capital allowances against an annual investment in plant in machinery, will only be in place until 31 December 2015. What happens from 1 January 2016 onwards is the decision of whichever political party comes into power following the 7 May ballot. However, if no real commitment is shown to capital allowances, it is said that the figure will revert to only £25,000.
Such a huge drop would be a real shame for UK businesses, especially those that have worked hard to invest in kit that will fuel their future growth.
The ability to claim 100% tax allowance on an investment in plant and machinery up to the value of £500,000 is a fantastic incentive for companies planning the next steps of their business. However, as I was told at a recent tax planning seminar led by accountancy firm Mazars, it looks like the initiative will be significantly scaled back from 2016 onwards. Time is therefore running out to make pivotal, tax efficient next-step purchases.
I would encourage anyone investing in capital equipment to therefore talk to their suppliers about the current capital allowances incentive, and the wider business case for the technology concerned. This represents a fantastic way for such an investment to be even more affordable. But the incentive won’t be around for long.”
To book a telephone appointment, request an on-site shredding consultation or trial one of UNTHA UK’s machines at their North Yorkshire headquarters, please call 0845 450 5388, email firstname.lastname@example.org or complete their short enquiry form.
To speak to Riverside Waste Machinery about the capital allowances benefit, or to discuss the best-fit new or used waste baler for your needs, please call 01423 325038, email@example.com, or complete our short enquiry form. Guest