Konecranes, a lifting equipment specialist, has welcomed the introduction of the tax super-deduction initiative as a massive boost for UK industry. Under the scheme, announced in the Chancellor’s March budget, companies can claim 130% capital allowances on qualifying plant and machinery investments made between 1st April 2021 and 31st March 2023.
This upfront super-deduction will allow companies to cut their tax bill by up to 25p for every £1 they invest. Firms will also benefit from a 50% first-year allowance for qualifying special rate assets, including long life purchases. The policy has been introduced to encourage investment and promote UK industrial recovery from the COVID-19 pandemic and the associated lockdown.
The launch of the HM treasury scheme comes at a time when Konecranes has been introducing its own initiatives to promote industrial investment and make the acquisition of new lifting equipment more affordable. In addition to flexible finance options and extended credit arrangements, the company has also launched its RENTALL programmes.
RENTALL represents a packaged approach to operators’ material handling requirements, combining the lease of the lifting equipment with service regimes, maintenance plans, spare parts and remote performance monitoring. The equipment and support are provided for a fixed term and for a regular monthly payment, providing predictable fixed costs for the material handling system and its maintenance. It also eliminates large upfront investment for improved cash flow.
The initial crane specification process is simplified as Konecranes tailors each RENTALL agreement to the lifting capacity and operations required, including any special processes. RENTALL is available for material handling applications of up to 10 tonnes. The scheme not only allows users to invest in new technology, but also allows state-of-the-art smart technology features to be incorporated, boosting productivity and enhancing safety. RENTALL may also incorporate Konecranes’ TRUECONNECT remote monitoring digital platform, which provides a real-time overview of crane performance and safety status. Such data can be used to improve lifting processes and highlight preventative service and maintenance requirements.
RENTALL has been designed to be a totally flexible solution, allowing customers to future proof against changes in material handling requirements. The package provides the option to upgrade equipment, technology, smart features and software at any time during the agreement period, to meet different operational needs.
Paul Bartlett, Konecranes’ UK Industrial Cranes Sales & Operations Director, stated: “Brexit and the UK’s emergence from the COVID-19 lockdown are creating significant business opportunities for many companies in the logistics, industrial and manufacturing sectors. Inevitably, some operators will need to invest in new and smarter material handling solutions to take advantage of such opportunities.”
He added: “Konecranes has responded by introducing flexible finance options and the RENTALL scheme, which will make the acquisition of lifting equipment and associated services more affordable. Subject to meeting the qualification criteria for the tax super-deduction initiative, companies may also make significant additional savings.
“In short, there has been no better time to purchase new and upgraded material handling systems. Konecranes will not be offering specific advice on the tax super-deduction scheme and we are recommending that companies planning to take advantage of the programme should consult with appropriate financial professionals.”
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