Plans to extend eight out of 24 UK enterprise zones announced in the UK Budget could increase capital investments as more businesses’ could quality for tax relief, said BNP Paribas Leasing Solutions.
Businesses operating in enterprise investment zones benefit from significant tax incentives, including 100% enhanced capital allowances (tax relief) to businesses making large investments in plant and machinery, and a 5 year period without business rates.
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The lessor believes that through the extension more businesses could qualify for capital allowances and therefore grow their capital investments.
The enterprise zones that the UK government plans to extend are: Manchester, Mersey Waters, Humber, Leeds, Tees Valley, Oxford Science Vale, MIRA (in Leicestershire) and Discovery Park (in Kent).
In addition, new Enterprise Zones at Blackpool and Plymouth will be created.
Additionally, the Chancellor announced pilot schemes in Cambridgeshire, Peterborough, Greater Manchester – subject to formal approval of Greater Manchester Combined Authority- and Cheshire East, which will enable these areas to retain 100% of any additional business rate growth beyond expected forecasts.
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By GlobalDataBNP Paribas Leasing Solutions said that these agreements could open the way for cities to offer additional targeted support for businesses.
Tristan Watkins, UK country manager for BNP Paribas Leasing Solutions said: "Extending the Enterprise Investment Zones is great news for IT and equipment providers because it will make it easier for more businesses to invest in the equipment they need."
"In the future, new freedoms for local authorities to retain and use the business rates they collect will enable them to build on local expertise to create much larger centres of excellence. Equipment providers and resellers need to keep a close eye on these regional developments to ensure that they make the most of the opportunities they present."
