Following the Chancellor’s Spring Budget announcement, Mark Minihane, Advanced Manufacturing and Mobility Tax Leader at EY in the UK, reflects on the implications for the Advanced Manufacturing sector:
“The Chancellor’s focus on tax reliefs – and allowing full expensing for qualifying plant and machinery from 1 April 2023 until 31 March 2026 – is encouraging for the manufacturing sector.
“An increased rate of relief for loss-making R&D-intensive SMEs should also have a positive impact on manufacturing research and development.
“Given the importance of the advanced manufacturing sector to the UK’s regions, the announcement of support for 12 high-potential, knowledge-intensive growth clusters, known as ‘investment zones’, will also be welcome and could help to attract new opportunities for the UK’s manufacturing firms. These businesses will be keen to hear more about the enhanced rates of Capital Allowance, Structures and Buildings Allowance, and relief from Stamp Duty Land Tax, Business Rates and Employer National Insurance Contributions being offered.
“However, a more thorough and long-term package of tax reliefs to support UK manufacturing is required to accelerate growth in the sector. Manufacturing businesses will look to future policy announcements expected from the Government, and the devil will be in the detail when assessing the impact of this announcement on the sector.”