What is the Super-Deduction Tax Break?
To support the post-COVID-19 pandemic economic recovery, on 3 March 2021, The UK Chancellor, Rishi Sunak, announced the £25 billion tax break to boost business investment by providing a reduction of up to 25p for every pound of qualifying spending on plant and machinery. This Super Deduction aims to ensure the UK remains one of the most competitive markets.
What are the Specific Reasons the UK Government introduced it?
As mentioned above, the Super-Deduction tax break was developed to encourage business investment into the economy, helping promote the UK’s post-pandemic economic recovery.
Over the next two years, it is hoped that increased business spending will bring about better productivity levels within the UK, which will, in turn, lead to greater corporate profits for the government to tax in 2023. https://originfinance.co.uk/what-is-super-deduction-and-can-it-help-my-business/