The Government’s recently announced tax relief scheme will allow manufacturers to accelerate their journey to net zero, with a leading energy financing specialist urging businesses not to miss out on the opportunity it offers.

Capitas Finance says the super-deduction tax incentive, which was introduced in the Budget in March, provides the ideal opportunity for manufacturers to invest in energy-efficient plant and machinery assets, which would not only boost productivity but also help carbon-conscious organisations meet their sustainability ambitions.

From 1 April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to offset this against taxable profits. This can be done through the 130% super-deduction first year capital allowance or a 50% first-year allowance for qualifying special rate assets. The introduction of the temporarily increased tax reliefs allows businesses to cut their tax bill by 25p for every £1 invested.

Faster tax relief
Capitas Finance believes it is an opportunity environmentally conscious manufacturers cannot afford to miss as most tangible capital assets, including energy efficiency and renewable energy technology, are considered plant and machinery for the purposes of claiming the super-deduction tax.

Darren Riva, CEO of Capitas Finance (pictured), said: “We understand that manufacturers across the country have committed themselves to more sustainable methods of manufacturing in order to reduce their environmental impact. Many are now looking at the investments they can make to drive their business forward.

“The introduction of the Super-deduction tax provides an ideal opportunity for them to accelerate their Net Zero journey which is why we are urging organisations to make the most of this scheme.

“However, we also understand that some businesses may be put off due to a lack of access to investment funds. As a specialist energy solutions finance company we can help remove the barriers to energy finance.

“We are here to help these businesses on their transition to net-zero, and by working closely with customers we can offer solutions that will help them achieve their goals and deliver a competitive advantage.”

More information can be found via the website (www.capitasfinance.com/insights/the-capitas-quick-guide-to-super-deduction-tax-relief-2021).