United Trust Bank's most recent broker survey has revealed that more than half of brokers expect to see an increase in business in the New Year.
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div>United Trust Bank’s most recent broker survey has revealed that more than half of brokers expect to see an increase in business in the New Year.
The majority of them, or nearly four out of five, put this down to having a Conservative government which has given SMEs the confidence to invest in their businesses.
However, nearly a quarter believed that uncertainty over the UK’s future in the EU was causing businesses they worked with to be more cautious.
Martin Nixon, Head of Asset Finance at United Trust Bank, did however add that the market has been given a short term boost from the Annual Investment Allowance (AIA) limit, which will be reduced from its temporary £500,000 limit to a £200,000 limit in January 2016.
“It was excellent news for businesses that the government decided not to take the AIA all the way back down to £25,000, but for those companies looking to make significant purchases of over £200,000, doing so before the end of the year makes for good tax planning,” said Martin.
“The tax saving could well offset the cost of purchasing the vehicle, plant or machinery sooner than planned, using finance rather than leaving it until later and incurring a higher tax bill in 2016.”
Martin added: “Like many of the brokers who took part in our survey, we also expect to exceed our 2014 business levels.”
“I’m confident that by the end of the year, United Trust Bank will have increased its asset finance lending by around 25%, year on year, and that’s thanks to the hard work of the team and the continued support of our valued broker partners.”
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