Partner Article

West Yorkshire accountants see huge increase in demand for manufacturing investment

Cleckheaton’s Finance Brokerage LLP, part of Clough & Company has reported a “dramatic” increase in demand from businesses wanting to invest in new plant and machinery items.

This comes after the Chancellor announced plans to provide more tax aid to businesses in this year’s budget.The Annual Investment Allowance works as a capital allowance, which offers tax relief at 100% on qualifying expenditure in the year of purchase.

Vicki Walker from Finance Brokerage LLP says: “Thanks to George Osborne doubling the Annual Investment Allowance (AIA), businesses can now buy up to £500k of plant and machinery and enjoy maximum tax benefits.”

“In the past the AIA was initially cut from £100k to £25k by the coalition. In 2012 it was then raised to £250k but this was due to end this December.

“Instead it has been doubled to £500k until next year and this is already having a major impact on what businesses are spending and investing in.

“In the last month alone we have received more enquiries from businesses operating in the manufacturing and construction sectors than during the last six months of 2013.

“These businesses were previously extremely cautious about spending, but the increase in the AIA has allowed them to take advantage of the tax benefits on offer and we are also sourcing finance for companies investing in everything from a printing machinery to construction equipment.”

“The government needed to make it easier for small and medium sized businesses to access funding and gain significant tax benefits from their capital expenditure.

“Now the AIA has been extended until 2015, businesses will no doubt take advantage of the allowances which will in turn help to stimulate growth in the economy.”

This was posted in Bdaily's Members' News section by Clare Burnett .