The new tax break comes into effect tomorrow and will
allow companies to deduct 130% of the cost of any
qualifying investment from their taxable profits –
meaning for every £1 they invest they can reduce their
tax bill by up to 25p.
On the visit, the Chancellor was welcomed by Neil
Ellis, CEO of Blackrow Engineering, and went on a tour
of the factory meeting apprentices. The Chancellor also
used some of the company’s machinery himself, putting
the finishing touches on a ‘Plan for Jobs’ metal
plaque.
Blackrow Engineering, which designs, produces and
installs manufacturing equipment, is planning to take
advantage of the super-deduction. The company has also
taken advantage of the VAT deferral scheme, a
Coronavirus Business Interruption Loan and the furlough
scheme.
Chancellor of the Exchequer said:
The super-deduction is the biggest two-year business
tax cut in modern British history – driving our
economy by helping businesses to invest, grow and
support our Plan for Jobs.
I urge firms across the UK to invest in our recovery
by taking advantage of this great opportunity.
Neil Ellis, CEO of Blackrow Engineering, said:
We were delighted to host the Chancellor today to our
workshops and to talk to him about our company.
Government initiatives including the furlough scheme
and business loans have enabled us to come through
this crisis. And we’re hoping that the
super-deduction being introduced now will help us
power our way out of it.
Any qualifying investment which businesses make from
tomorrow will qualify for the super-deduction.
The policy will unlock £20 billion a year in
investment, according to the independent Office for
Budget Responsibility.
Blackrow Engineering was started in 1979 by three
partners in a small garage in Grimsby.
