Inspired by wellness-conscious millennials’ desire for simple, wholesome snacks and…
Mark the date in your diary or ask Alexa to set an alarm for March 31st at 12pm, as the British Plastics Federation opens up its webinar explaining the new tax ‘super deduction’ scheme for plant and machinery investment.
At the recent Budget, the Chancellor presented an exciting development opportunity for UK plastics companies. A new ‘super deduction’ tax break was announced that allows companies to cut their tax bill by 25% on every £1 they invest between 1 April 2021 and 31 March 2023.
Presented by tax specialists Mark Simpson and Timothy Jarvis, who are partners at global law firm Squire Patton Boggs, the webinar will examine the opportunities this tax deduction scheme presents for companies within the plastics industry.
For example, companies investing in qualifying new plant and machinery assets will be able to claim:
- A 130% capital allowance on their new plant and machinery investments
- A 50% first-year allowance for qualifying special rate assets
Help to Grow
This new tax deduction is intended to stimulate investment in productivity – enhancing plant and machinery assets that will help businesses grow. This new support makes the UK first in the world for the net value of the plant and machinery allowances according to the Organisation for Economic Co-operation and Development (OECD).
A company investing £1m in qualifying expenditure, for example, can claim a deduction of £1.3m (130% of the initial investment) when calculating its taxable profits. Deducting £1.3m from taxable profits will save the company up to £247,000 on its corporation tax bill.
Commenting on the scheme, BPF Director General, Philip Law, said: “This tax deduction scheme will boost investment in new machinery and equipment in the UK plastics industry at a vital time, providing companies with an opportunity to improve their productivity, global competitiveness, and environmental profile. We encourage plastics manufacturers and recyclers to attend this webinar to ensure they capitalise on this government concession.”
‘Understanding the New Tax Super-Deduction Scheme for Plant and Machinery Investment’ will also feature a Q&A session and is free for BPF members, £25 for non-members.
Companies can visit the BPF website to find out more or register.