Hurst, an accounting and business advisory firm, has announced the formation of a specialist team to advise businesses on the super-deduction scheme.
Led by Adran Young, tax partner at the company, the department will support a range of north west firms in navigating the rules announced in last month’s budget.
The super-deduction scheme provides businesses investing in plant and machinery 130% super-deduction first-year capital allowance, with a 50% first-year allowance for other qualifying assets, including fixtures and fittings.
Moreover, the measures cut corporation tax bills for investing companies by up to 25p for every £1 invested.
As a result of the “generous enhancement to the existing capital allowance” rates of 18% on plant and machinery and 6% on fixtures and fittings, companies will gain the full relief on an asset immediately rather than between five and 10 years after an investment.
Young said: “The deductions, at 130 per cent for plant and machinery and 50 per cent for fixtures and fittings, are much higher than expected, and surprisingly they appear to be uncapped.
“It’s potentially a really valuable measure, and one which we expect businesses to be keen to benefit from.”
He added: “I think it will encourage businesses to bring forward capital investment decisions and, in that way, help them to improve their productivity and processes.
“We are already seeing a good level of interest among manufacturing and engineering clients, and are working with them to analyse their capital spending and advise on the best course of action to help them qualify under the scheme.”