Super Deduction is super complex for SMEs
Praveen Gupta, head of tax at Azets, the UK’s largest accountancy and business advisory form for SMEs, comments on the Super Deduction changes announced in the Budget coming into effect today:
“The scheme is a welcome measure, but the complexity is in the small print. This is a super-complex super-deduction and timing for expenditure will be key. As a government policy the message is clear; invest in the next two years to kickstart the economic recovery after covid and take advantage of the enhanced tax reliefs, before the hike in corporation tax in 2023. However, the super allowances are only available to companies, excludes second hand assets and expenditure incurred under contracts entered into before 3 March 2021 is also excluded. Under these exclusions many businesses such as sole traders, partnerships and landlords will be unable to benefit from the enhanced allowances. As always, at first glance, the headlines are eye catching. However, close scrutiny of the legislation is required to ensure the relevant criteria are met to claim super allowances.”
