Up to £1,000,000 of investment in plant and machinery by businesses may be eligible for tax relief. The minimum eligible investment is £200,000.
This is a temporary arrangement which is designed to encourage business investment by accelerating tax relief.
The investment can be paid from business cash or borrowed funds.
The timing of the investment can affect the amount of tax relief.
Only certain types of assets will qualify for the relief.
Many business owners in this area, Glasgow and Lanarkshire, are cautious because of the Brexit uncertainties, but some remain determined to push ahead with investments as a means of improving profitability and increasing the rate of growth. Discussion with local bankers suggest that businesses within construction, road haulage, and engineering are investing in hard assets. There also seems to be significant investment in tech (hardware, software, and training) by businesses in communications, assembly, financial services, and contact centres.
As you can see, this could be helpful, but it does require expert tax advice. To help you make an informed decision, have a chat with one of our chartered accountants. It’s free, and there is no obligation.
t: 0141 643 9200