Rishi Sunak’s budget in early March was one of the most-talked-about events of 2021 so far, as business leaders and employees alike tuned in to learn what the future of the economy would mean for them.
Covering everything from the continued furlough scheme to the newly-announced UK freeports, much of the commentary centred upon the financial support available to organisations as they navigate their recovery from the pandemic.
One such incentive which hasn’t achieved the airtime it deserves is the temporary tax relief available for expenditure on capital assets.
From 1 April 2021, qualifying investments in plant and machinery which would ordinarily qualify for 18% main rate writing down allowances, will be eligible for an enhanced 130% ‘super deduction’. A first-year allowance of 50% is also available for investments that ordinarily qualify for a 6% special rate.
The capital allowance measure – which is expected to run until 31 March 2023 – is designed to encourage businesses to invest in the assets they need to thrive, and now makes an investment in an UNTHA shredder even more affordable.
Commenting on the news, UNTHA UK’s global director of business development Gary Moore said: “The waste industry has really demonstrated its mettle and resilience during Covid, with many organisations pressing ahead with projects and innovating regardless of the economic backdrop.
“But that doesn’t mean they’ve had it easy or that they have significant cash reserves. Tax relief such as this is therefore a welcome incentive to keep investing, when it would be easy to put things off for another day. And let’s face it, the need to better protect the environment isn’t something that we can simply pause.”
For further information on the temporary tax relief, please visit the Government’s dedicated web page; to learn more about our flexible finance packages, please explore the UNTHA Finance area of our site; or to discuss your investment in person, please don’t hesitate to contact us.