Super-deduction brought great things
“According to a CBI survey, ‘Super-deduction’ could increase business investment by up to £40 billion a year by 2026. With the economic crisis the UK is currently experiencing, I feel the government is taking away these incentives at the wrong time. Businesses are more cautious and need the added incentive to encourage investment and growth. With this in mind, they may have a plan in place to introduce something new. I asked around the team to see what they would like to see introduced…”
Paul Roberts, Founder & Director
Chris Roberts, our Managing Director
“For me, it would be great if super-deduction was retained. We saw a positive shift in business thinking with those considering property projects with significant capital expenditure. Super-deduction was a useful mechanism for increasing business awareness of capital allowances and the tax breaks it offers.
Another area I would welcome changes is the written down values of general & special rate pools. Especially the 6% special rate pool. Increasing the rate of writing down allowances would be a very useful change for businesses and help them crystallise the tax breaks quicker. We find a 6% a year writing down allowance doesn’t incentivise businesses and feel there’s scope to increase both the general pool (18%) and special rate pool to a more advantageous level.”
Dave Corfield, our Claims Manager
“Annual investment allowance has been a great incentive and is now permanent at a £1m limit. It would be great, however, to see this uncapped. Similar to the super-deduction. This would encourage focused and proactive thinking to capture all qualifying spending in the year of expenditure. In turn, avoiding the need for retrospective reviews. It would also remove the need for larger businesses to restrict the level of spending to work within the current limitations of the possible tax breaks.”
Ruby Whilock, our Claims Analyst
“We welcomed the introduction of Structures & Buildings Allowances (SBA) and the adjustment from 50 years to 33 1/3 years. Although the allowances are not clawed back in some instances, it would be far better to remove the clawback of SBAs entirely in the event of disposal.”
Spring Budget 2023
On Wednesday 15th March 2023 the next spring budget will be announced by the Chancellor and it will be revealed what plans have been put in place to help support businesses through the recession. Our team will create an article detailing changes connecting to capital allowances, so keep an eye out!
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5 December 2023Capital Allowances Manual
Capital allowances play a significant role in taxation. Allowing businesses to claim deductions for the depreciation of their assets. Among these assets, plant and machinery are frequently mentioned. However, the term “plant and machinery” is not explicitly defined in tax law. It should also... -
22 November 2023
Autumn Budget 2023: Changes to Capital Allowances
The Autumn Budget of 2023 has arrived, and with it comes significant changes and developments the government has put in place. Chancellor Jeremy Hunt delivered the statement on Wednesday, 22 November 2023. For businesses and individuals alike, these adjustments in tax policies can have far-reaching implications.
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