The super deduction announced by Rishi Sunak yesterday is undoubtedly super news.
The super deduction tax rate of 130% is available for general pool expenditure and 50% first year allowance on special rate pool expenditure, from 1 April 2021 to 31 March 2023. This is available to companies paying corporation tax.
Whilst this may be welcome news, as always, the devil is in the detail. It is clear from the internet and social media that leading commentators do not yet agree how super deduction will work. We will share our views with you as this becomes clear.
It is clear, however, that capital allowances really are more important than ever as new initiatives were announced yesterday, and corporation tax will rise. Capital allowances continue under the current regime. The annual investment allowance will also continue at £1,000,000 for all entities.
Wherever you are in the UK we would be pleased to hear from you if you would like to review the opportunities capital allowances present for your company to pay less tax.