Webinar success as spotlight shines on Super-deduction

Managing Director Alun Oliver and Property Taxation Surveyor Todd Arnison illuminated the finer details of the ‘super complicated’ allowance – including case studies – within the kaleidoscope of property tax reliefs available to real estate owners, occupiers and investors.

Their insights brought the spectrum of allowances into sharp focus and how they can be applied to save money and significantly improve cash flow; potentially enabling further new projects or investment.

Alun and Todd also gave updates about freeports, the Chancellor’s March and October Budgets, and briefly touched on E³’s latest Community Infrastructure Levy (CIL) and Land Remediation Tax Relief (LRTR) successes.

Directors, partners, owners, finance managers, accountants, family trusts, investors, lawyers and property professionals were among the delegates to attend the hour-long webinar, titled ‘Super Deduction and Capital Allowances’.

Alun Oliver FRICS said: “While the Super-deduction can appear super-complicated at first sight, there are significant opportunities to save money and capitalise on the benefits it offers for those in a position to do so.

“The webinar gave us the opportunity to shed light on the multitude of complexities, while setting in context against the other tax reliefs available and such factors as time-scales, qualifying criteria, restrictions and clawbacks.

“Once again the message is clear: address property tax considerations as early as possible and seek expert advice to ensure the best outcome can be achieved.

“This is particularly important in relation to the Super-deduction, which is limited to expenditure between 01 April 2021 and March 31, 2023. So, time is of the essence!”

Alun added: “The webinar drew a strong audience, and our thanks go to the many people who attended.”

One attendee said: “The practical examples were a good way to explain the complexities of what was being said… It was also beneficial for me to revisit the various capital allowance pools/rates.” 

The ‘Super-deduction’ was unveiled in Chancellor Rishi Sunak’s Budget in March. It gives corporation taxpayers the chance to claim a 130% capital allowance on expenditure qualifying as plant and machinery in what the tax legislation references as the ‘Main Pool’ or 50% ‘Special rate allowance’ in respect to asset expenditure allocated to the ‘Special Rate pool’ for integral features, thermal insulation or long-life assets on new expenditure.

Initially the allowances were unavailable to property investors, but the Government permitted qualifying expenditure in leased buildings to qualify following sustained industry lobbying.

Case studies in the webinar setting the new rules in context included a city office purchase and redevelopment.

Under the Super-deduction this would have seen a first-year tax saving increase from £708,700 to £3,231,900 and total tax saving enhanced from £3,059,000 to £3,731,900.

Other case studies focused on an office refurbishment, an industrial estate and a GP surgery, whilst also illustrating the impact of the new boosted capital allowances changes within the new Freeport sites.

For more information about the Super-deduction and capital allowances or any wider property tax matters, please contact E³ Consulting on 0345 230 6450 and/or hello@e3consulting.co.uk for an initial, complimentary, no-obligation discussion.