COVID-19 Impact
Since the Covid-19 pandemic, existing low levels of business investment have fallen, with a reduction of 11.6% between Q3 2019 and Q3 2020.
Much of the UK’s productivity gap with competitors is attributable to our historically low levels of business investment compared to our peers (Gov, 2021). In an announcement earlier this month, Chancellor, Rishi Sunak launched a new super deduction tax policy. From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim:
- a 130% super-deduction capital allowance on qualifying plant and machinery investments
- a 50% first-year allowance for qualifying special rate assets
The super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest. The super-deduction will also give companies a strong incentive to make additional investments and to bring planned investments forward.
As a result, these measures can promote economic growth and counter business cycles. The OBR has estimated that it will boost business investment by 10%; around £20 billion more per annum.
When will the super deduction tax policy end?
The relief will end before the higher rate of corporation tax comes in in March 2023.
Is now the right time to invest in a polystyrene compactor?
Are you missing out on an additional revenue stream? With the super deduction now in place, it’s time to re-evaluate your strategy and ensure it’s properly suited to your business needs.
Full loads of compacted polystyrene would typically have payloads of 15-20 tonnes when valued at up to £600 per tonne this certainly makes the product highly recyclable and valuable.