RE: Who needs some good PR, ...and can afford to buy it.?14 Apr 2021 09:48
Rooky, yes, the red herring here is the initial mention of rental in B&S's early post. As far as I understand it, MACE's business model is to operate their own construction sites and since the AFC equipment would be owned by MACE, it would qualify for the Government's temporary "130%" depreciation scheme. It potentially wouldn't apply to rental companies like Aggreko.
And, yes, it would in theory cover any AFC investment in additional plant for manufacture, but the depreciation costs would only be written off against taxable profits and we are still a bit short of these! Even if the output from the expanded production provided significant profits within the two years of the current scheme, it is likely that the deductible element would be well short of 130% of the capital cost.