Lack of awareness for the increase in the Annual Investment Allowance

Market News Lack of awareness for the increase in the Annual Investment Allowance

31.05.2019Editor: Steffen Donath

UK - A new survey has found that many manufacturing and engineering firms are not planning to take advantage of the increase of the Annual Investment Allowance (AIA).

Related Companies

The Manufacturing Technologies Association

HASCO Hasenclever GmbH + Co KG

Meusburger Georg GmbH & Co. KG

Renishaw plc

MTA CEO James Selka: “The increase to the Annual Investment Allowance is a great opportunity for UK manufacturing and engineering firms to invest in new equipment and embrace new technologies that could transform their businesses.”
(Source: MTA)

From 1 January 2019 to 31 December 2020, a temporary increase in the AIA has been introduced by the UK government. This is to enable faster tax relief for plant and machinery investments between £200,000 and £1 million with the aim to help businesses to invest and grow.

However, the latest survey by the MTA and Close Brothers Asset Finance has found that despite the increase in AIA manufacturing and engineering firms are not changing their plans to invest in new equipment. The survey found that only 42% of engineering and manufacturing firms were aware that the Government had increased AIA.

The survey also found that only a minority of companies (40% overall, 45% in engineering/manufacturing) is planning to increase investment in 2019 as a result of the rise in the AIA. While that sounds like a reasonable rate, only 15% overall respondents and 16% of engineering and manufacturing companies were planning a significant increase, with 25% and 29% respectively saying it would only be a small increase on their original intentions.

Gallery

James Selka: “The increase to the Annual Investment Allowance is a great opportunity for UK manufacturing and engineering firms to invest in new equipment and embrace new technologies that could transform their businesses. More needs to be done to get the message out there to invest and more support is needed to help stimulate these purchases.”

Steve Gee: “The Annual Investment Allowance is there to help companies invest in their future. Close Brothers Asset Finance are at hand to support and guide companies through this process and ensure they are maximising their return on investment.”

James Selka, CEO of the MTA, said: “The increase to the Annual Investment Allowance is a great opportunity for UK manufacturing and engineering firms to invest in new equipment and embrace new technologies that could transform their businesses. More needs to be done to get the message out there to invest and more support is needed to help stimulate these purchases.”

He added: “The MTA was pleased to see that the Budget included the expansion of the AIA from £200,000 to £1,000,000. This was a specific ‘ask’ from the MTA and will make investing in new equipment more cost-effective and give the UK the opportunity to be more competitive on an international stage. Now companies need to use this allowance and invest in their future.”

Steve Gee, CEO of Close Brothers Asset Finance's industrial equipment division said that the AIA is to help companies invest in their future. Close Brothers Asset Finance is at hand to support and guide companies through this process.

Outstanding contribution to UK industry award.

Unfold for details of your consent

Stand vom 23.03.2021

Naturally, we always handle your personal data responsibly. Any personal data we receive from you is processed in accordance with applicable data protection legislation. For detailed information please see our privacy policy.

Consent to the use of data for promotional purposes

I hereby consent to Vogel Communications Group GmbH & Co. KG, Max-Planckstr. 7-9, 97082 Würzburg including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. A list of all affiliated companies can be found here

Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.

In case I access protected data on Internet portals of Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access to such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here.

Right of revocation

I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. One option to declare my revocation is to use the contact form found at https://support.vogel.de. In case I no longer wish to receive certain newsletters, I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the data protection declaration, section editorial newsletter.

(ID:45955129)

Market News Lack of awareness for the increase in the Annual Investment Allowance

Subscribe to the newsletter now

Don't Miss out on Our Best Content

Consent to the use of data for promotional purposes