Only a fifth of SME’s have taken advantage of the UK government’s Annual Investment Allowance tax incentive scheme which would help them invest in new equipment, according to a survey from UK asset finance company Lombard.
The survey asked 400 companies about the incentive, which increased from a £25,000 investment allowance in December 2012 to £250,000 running until December 31 2014.
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Of those companies surveyed, one third said they had not even heard of the initiative, which was designed to increase plant and equipment investment throughout the UK through offsetting the amount invested against this allowance.
Lombard also found that when informed about the scheme, 43% of companies said that it would have influenced their decision to invest.
Richard Hemsley, managing director of Lombard said: "Investment lies at the heart of getting our economy back to running at full strength and we are here to support our customers to achieve their goals and ultimately support our country’s recovery. Capital investment remains a critical factor for UK companies to compete with other countries, particularly emerging economies where we are seeing increased focus on business investment."
He encouraged companies to speak to their financial advisers about taking advantage of the scheme.
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