The super-deduction £25bn tax break, announced in April’s Budget, is intended to spur investment by providing 25p off company tax bills for every pound of qualifying spending on plant and machinery.
The idea of the super deduction is that you get to write off 130% of your investment in "plant and machinery". But if corporation tax then goes up, you'll be charged 25% in tax on that.
As Stuart Adam of the Institute for Fiscal Studies says: "It looks like the size of the super-deduction has been chosen precisely to offset the effect of the corporation tax rate rise. The tax rate is going up by 30%, it is going to be 130% of what it is. And so by giving a super deduction of 130% of investment. It turns out that those two effects offset each other almost exactly."
For this Masterclass event, we will speaking with Made Patrons Prime Accountants Group to offer their expertise on the subject.
You can expect to have the following questions and more answered:
Do you plan on investing to utlise the tax deduction?
Have you brought future plans forward in order to counteract the effects of the pandemic and continue growing?
Do you think the super deduction will cause a net boost in economic growth?
Do you think the super deduction is a good thing for your business overall?
Sign up now for this 1 hour Masterclass event on 13th July at 11:15am.