The manufacturing industry welcomed expedient news earlier this month as the government unveiled its 2016 summer budget. Rather than drop the Annual Investment Allowance down to £25,000 as planned it will remain at £200,000 for the remainder of this parliament. Midland Pallet Trucks is helping businesses leverage opportunity to upgrade equipment inventories with an A-grade range of industrial products.
The AIA is a capital allowance, which offers tax relief at 100% on qualifying expenditure in the year of purchase. From January next year Chancellor George Osborne has announced that businesses will receive a £200,000 plant and machinery allowance. The allowance was originally set at £500,000, but the Chancellor has been able to present this fall as a benefit, due to the fact a £25,000 limit was planned. As the economic recovery gains momentum the Office for Budget Responsibility predicts that the stability will boost investment and stimulate growth within UK businesses.
“Many small and medium-sized businesses have benefitted from our enhanced Annual Investment Allowance,” says Osborne in his Budget. “So I can confirm that the Annual Investment Allowance will not fall to £25,000 but be set at £200,000; this year and every year.”
He adds that it’s “A major, permanent boost to the incentives for long-term investment by small and medium-sized firms in Britain.”
Phil Chesworth, Managing Director of Midland Pallet Trucks says, “It’s great to see the UK government recognising the need to support British manufacturers with financial assistance. The world is finally emerging from the depths of an economic recession and the investment allowance will play an integral role in helping the UK retain its status as one of the biggest manufacturers on the planet.”
When it comes to spending the allowance Midland Pallet Trucks is the go-to retailer for premium quality manufacturing equipment. For manufacturing businesses wanting to invest in multi-purpose equipment that enhances production across the board hand pallet and pump trucks are astute choices. With a wide range of price brackets, weight capabilities and finishes and specifications there’s a pallet truck for every manufacturer.
Phil Chesworth, Managing Director of Midland Pallet Trucks says, “For years theAnnual Investment Allowance has played an integral role in helping manufacturing businesses arm themselves with quality machinery. Freezing the AIA at £200,000 will continue to help manufacturing businesses continue to invest in premium equipment such as pallet trucks, lift tables, stackers, drum loaders, aerial work platforms and more.”
While the frozen £200,000 figure is a positive win for the manufacturing industry, equipment managers will still want to secure the best bang for their buck. Midland Pallet Trucks is on-hand to deliver with a comprehensive range of competitively priced manufacturing equipment engineered to boost productivity, maximise operational efficiency and augment on-site safety.
All products are held on-site in the company’s UK based warehouse. This means that when manufacturers receive their £200,000 Annual Investment Allowance they can place an order with Midland Pallet Trucks and start utilising new equipment within a matter of days.