.png)
.png)
All it’s cracked up to be?
Key points
- The super deduction is time limited to boost capital expenditure between now and 31 March 2023 and is limited to businesses within the charge to corporation tax.
- Understanding when to use it depends on understanding the current system of capital allowances.
- The super deduction might bring with it cashflow advantages but at a long-term cost.
The UK Budget’s temporary super deduction of 130% for main pool capital allowance eligible expenditure was billed by the chancellor as ‘the biggest business tax cut in British history’.
It is certainly a generous measure but in some circumstances it comes with a sting in the tail. The attraction of the super deduction will very much depend upon the nature of the expenditure incurred and the circumstances of the company in question.
Background – existing capital allowances
In order to look at the impact of the super...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
