Businesses should “use or lose” the range of super tax breaks introduced in the spring 2021 budget to encourage capital investment, Azets believes.
He outlines how these allowances include the super allowance, a 130% first-year allowance for expenses related to eligible main pool assets such as machinery, furniture, fixtures, computers, and the special enhanced allowance for 50% for the first year for construction assets such as electrical, water and heating systems.
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Azets added that the breaks are available until March 31, 2023 and are in addition to the existing annual investment deduction which allows for 100% relief of up to £1m of expenditure incurred each year on investment assets. factory and eligible machinery, and which ends on the same date.
However, Azets Scotland tax partner Mark Pryce said uptake was very low and Scottish businesses were missing out on millions of pounds in tax relief – while business investment is key to catalyzing growth and long-term productivity.
“The low uptake of the two super allocations is due to a lack of incentive awareness coupled with general uncertainty about the economy,” he said. “That said, the Super Allowance incentives are some of the most generous investment incentives ever created – and we encourage business owners to take full advantage of them before they leave.”