Tax Planning

The “tremendous deduction” proposed within the UK will increase the complexity of tax planning

The newly proposed UK capital allowance of 130% for investments in machinery and equipment could make it difficult for companies to decide whether to ultimately get a tax break.

The “super deduction” presented by the UK Chancellor of the Exchequer Rishi Sunak on Wednesday as part of the budget for spring 2021 would allow companies over two years to reclaim tax expenses that are higher than the actual investment costs.

The government estimates the proposal will cost an estimated £ 29 billion ($ 40.4 billion) and make the UK the most generous tax incentive system of the 37 members of the organization for …

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