The Courier & Advertiser (Angus and Dundee)
Benefits brewing for investment
Plans to create a carbonneutral distillery in St Andrews have been ‘reignited’ by yesterday’s Budget.
Eden Mill co-founder Paul Miller said the Guardbridge-based distiller and brewer’s plans for a £4m investment had been paused during Covid-19.
However, tax benefits for firms making investments will help proceed.
Mr Miller said: “As a progressive growing business we also welcome the support for capital projects.”
The expansion project will see former paper mill buildings refurbished to become Eden Mill’s new home – allowing them to increase production of gin, the project beer and whisky, create more innovative and pioneering products, and retain space for further expansion.
Included in the original plans submitted to Fife Council are several visitor areas, with a café/bar, visitor centre, shop, presentation room and a VIP tasting area on the top floor of the distillery offering views over university campus estuary.
Eden Mill is a leading tourist destination in Fife on Tripadvisor and at peak times was fully booked weeks in advance.
The new facility will enable Eden Mill to double the number of tourists taking distillery tours from 25,000 to 50,000 a year. the and
The Budget contained shortterm gains for Scottish businesses but a “scary” increase in corporation tax further down the line, a leading tax expert said yesterday.
Andrew Mcmillan, tax director in the Dundee office of Johnston Carmichael (JC) – Scotland’s largest independent firm of chartered accountants and business advisers – said there was a lot to welcome in the chancellor’s speech.
Businesses throughout Scotland will be relieved there was no major change to capital gains tax after widespread speculation Rishi Sunak would use that as a tool to help start plugging a huge hole created by Covid-19 in the UK economy.
JC has many high net growth and other business clients who will be taking a “huge outlet of breath” in relief he did not use CGT as a lever to rake in more revenue for the Treasury, he said.
Mr Mcmillan said the new “super-deduction” – a 130% first-year capital allowance for qualifying plant and machinery assets – could be a boon for businesses with resources to invest in their future.
Mr Sunak said it would allow companies to cut their tax bill by up to 25p for every £1 they invest, ensuring the UK capital allowances regime is among the world’s most competitive.
But there is a sharp shock down the line after Mr Sunak also revealed corporation tax on company profits above £250,000 will rise from 19% to 25% in April 2023.
The rate will be kept at 19% for about 1.5 million smaller companies with profits of less than £50,000.
“We expected an increase in corporation tax so it’s not a surprise,” said Mr Mcmillan.
He added: “Overall, in the short-term, the Budget was very positive.
“But for some businesses, the thought of 25% corporation tax will be quite scary”.
Holyrood will come under pressure to follow suit with an extension to the stamp duty holiday on house purchases south of the border, to June 30, while new UK Governmentbacked low-deposit mortgages will help the housing market throughout the UK, he said.