The Chancellor of the Exchequer?s decision in his Autumn Statement to uprate tenfold the annual investment allowance for plant and machinery ? from ?25,000 to ?250,000 ? is a sign that he has listened to the British Hospitality Association?s arguments, says Martin Couchman, deputy chief executive, BHA.
?The allowance is a key element in the refurbishment and extension of existing hotels,? he says.? ?Before the Statement, we urged him to increase this allowance and we welcome his initiative.
?In view of the cost of most hotel investments, the ?25,000 allowance was of little value but the increase announced today ? and due to be implemented from January 2013 – will be a useful boost to the hotel industry.?
Other measures welcomed by the association included the reduction of corporation tax from 22 per cent to 21 per cent in April 2014 and the scrapping of the 3p per litre fuel duty.
?Fuel costs are a big item in domestic holidays, particularly for those travelling to far-off rural areas,? Mr Couchman said.
For further information:
Martin Couchman
020 7404 7744