SPRING BUDGET 2023: 100% FIRST YEAR ALLOWANCE

Boost your business with the 100% First Year Allowance

Key Points of the Spring Budget 2023

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Annual Investment Allowance Permanently Set at £1 Million

As of the Autumn decision, 99% of businesses can now receive 100% tax relief on their qualifying plant and machinery investments. This is applicable in the year of acquisition, thanks to the Annual Investment Allowance being permanently set at £1 million.

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Extension of the Super-Deduction

The UK government initially introduced the super-deduction in 2021. It aimed to encourage companies to invest further. However, although this measure was set to end on 31 March 2023, it will now be replaced by full expensing.

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Introduction of the 100% First Year Allowance

From 1 April 2023 until 31 March 2026, companies across the UK can write off the total cost of qualifying main rate plant and machinery investment in the year of acquisition. This allowance, also known as full expensing, will replace the super-deduction.
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50% First-Year Allowance for Special Rate Assets

Companies investing in special rate (including long life) assets will also benefit from a 50% first-year allowance during this period.
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UK's Plant and Machinery Allowances Rank Joint First in the OECD

With the introduction of full expensing, the UK’s plant and machinery allowances will be joint-first in the OECD in Net Present Value terms. Thanks to this move, it will no longer drop to 33rd.
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Long-Term Tax Regime Competitiveness

The government is committed to ensuring that the tax regime remains competitive in the long run. It also plans to make this measure permanent as soon as it is economically responsible to do so.

Empower your company’s growth with the strategic advantage of the 100% First Year Allowance.

In the dynamic and ever-changing business world, staying ahead of the competition and driving growth is paramount. Introducing the 100% First Year Allowance in the Spring Budget 2023 has offered many business prospects. These invaluable investment opportunities serve to strengthen their market position. So, in light of the recent announcement, we want to ensure that our valued customers are fully informed about the new 100% First Year Allowance. Moreover, we can show you how it can positively impact your business. This excellent development is part of the UK government’s commitment to creating a competitive business tax environment.

The 100% First Year Allowance is a game-changing initiative. One that’s designed to propel business growth and investment. More businesses can invest thanks to significant tax relief on qualifying plant and machinery investments. And it’s all thanks to the UK government fostering a competitive business tax environment. An environment that empowers companies to invest in their operations with confidence. This strategic decision not only enhances individual business performance. It also contributes to the overall economic growth of the UK. When businesses take advantage of the 100% First Year Allowance, they unlock the door to new opportunities.

This financial incentive enables companies to invest in cutting-edge technologies and state-of-the-art equipment. Doing so paves the way for increased productivity, efficiency, and innovation. As a result, businesses can stay ahead of the competition, adapt to market changes, and create a strong foundation for long-term success. At Locators, we understand the transformative potential of the 100% First Year Allowance. That’s why we have flagged it as a key point of interest in the Spring Budget 2023 — as it can shape the future of your business. We believe that companies can forge a path to success by capitalising on this opportunity. Strategic investments and a commitment to continuous growth and improvement drive our approach.

A guide to leveraging the 100% First Year Allowance

Unleash your business’s full potential by harnessing the power of the 100% First Year Allowance

The 100% First Year Allowance is a groundbreaking financial incentive. Introduced in the Spring Budget 2023, it offers businesses an unparalleled opportunity to . . .

🟪 | Transform their operations
🟪 | And drive business growth

With this remarkable tool at your disposal, now is the time to embark on a bold journey and invest in your company’s future. To fully capitalise on the 100% First Year Allowance benefits, businesses must adopt a proactive and strategic mindset.

The following outlines the essential steps to leverage the 100% First Year Allowance . . .

Understand the Allowance Framework

The 100% First Year Allowance is available for investments in qualifying main rate plant and machinery. It applies to investments made between . . .

🟪 | 1 April 2023 and 31 March 2026

Businesses can also benefit from a 50% first-year allowance during this period. This is for investments in special rate assets, including long-life assets. Understanding the allowance framework and eligibility criteria is critical. Locators can help you make informed decisions that help maximise tax relief and drive business growth.

Assess Your Business Needs

Effective investment planning relies on thoroughly assessing your business’s needs and future goals. Identifying areas where new equipment or technology can . . .

🟪 | Enhance productivity
🟪 | Increase efficiency
🟪 | Or foster innovation

. . . will help you develop a targeted investment strategy that optimises the benefits of the 100% First Year Allowance.

Develop a Strategic Investment Plan
Do you clearly understand your business’s needs and the allowance framework? If so, the next step is to develop a strategic investment plan. This plan should prioritise investments in qualifying assets that align with your . . .

🟪 | Business’s growth objectives
🟪 | And deliver the most significant impact

Your plan should also factor in the availability of the 50% first-year allowance for special rate assets. Doing so will help diversify your investments to strengthen your operations further.

Execute Your Investment Strategy

Once your strategic investment plan is in place, it’s time to implement it. To acquire the necessary assets at the best possible terms, engage with trusted . . .

🟪 | Suppliers
🟪 | Manufacturers
🟪 | And partners

Remember that the investment window for the 100% First Year Allowance is limited. Therefore, timely execution is crucial to reap the full benefits of this financial incentive.

Monitor & Evaluate Your Investments

Have you implemented your investment strategy? If so, it’s essential to monitor and evaluate the performance of your new assets. Regularly assess the impact of your investments on . . .

🟪 | Productivity
🟪 | Efficiency
🟪 | And overall business growth

Once you’ve done this, you can make any necessary adjustments to ensure your business thrives. This ongoing evaluation process will help you refine your investment strategy. All so you can maintain a competitive edge in an ever-evolving business landscape.

In conclusion, the 100% First Year Allowance is a powerful tool that can . . .

🟪 | Propel your business to new heights
🟪 | And open the door to a world of untapped opportunities

Adopt a strategic approach to investments and leverage the full potential of this financial incentive.

Do so, and your business can chart a course to success and achieve unprecedented growth and prosperity.

Propel your business forward by partnering with Locators to harness the 100% First Year Allowance

Empower your business by leveraging Locators’ material handling and storage systems expertise.

As the South’s leading material handling and storage systems company, Locators is your ideal partner. We can help you capitalise on the 100% First Year Allowance. Our mission is to help you navigate the complexities of this financial incentive. We can ensure your business seizes the opportunity to grow and enhance its operations.

At Locators, we understand the transformative power of the 100% First Year Allowance. Our team will work hand-in-hand with you to . . .

Identify the Right Investments
We will assess your business’s unique needs and goals. Our team will pinpoint the most suitable material handling and storage solutions that qualify for the allowance. This targeted approach ensures that your investments deliver . . .

🟪 | The most significant impact
🟪 | Enhance operations productivity
🟪 | Enhance operations efficiency

Simplify the Process
Navigating the complexities of the 100% First Year Allowance can be challenging, but our team will guide you every step of the way. Our team will break down the process. We will also provide clear and concise information to help you make informed decisions that drive your business forward.
Provide UnrivalLed Support
As your trusted partner, Locators is committed to supporting your business. Our team will be by your side from initial consultations to post-investment evaluations. We are here to ensure you maximise the 100% First Year Allowance and its growth opportunities.

The Spring Budget 2023 incentives — including the 100% First Year Allowance — offer a valuable opportunity for businesses to thrive and excel. Don’t let this chance pass you by. Contact us today to discuss how Locators can support your business through this financial incentive.

We can help you unlock the full potential of the 100% First Year Allowance and propel your company to new heights.