UK extends tax break for manufacturers to cushion COVID-19 hit

FILE PHOTO: A staff member works at PALLITE, a designer and manufacturer of social distancing screens and desks from recyclable paper board, amid the outbreak of the coronavirus disease (COVID-19), in Wellingborough, Britain July 20, 2020. REUTERS/Andrew Boyers

LONDON (Reuters) - Britain’s finance ministry said it would extend a tax break to stimulate investment in manufacturing by a year in an attempt to help companies weather the COVID-19 pandemic.

The temporary 1 million pound allowance for tax relief would be extended until Jan. 1 2022 for businesses such as manufacturers which make capital investments in plant and machinery assets, the Treasury said.

Figures published earlier on Thursday showed output in manufacturing remained 8.1% below where it was at the end of last year.

Writing by William Schomberg, editing by David Milliken