A kaleidoscope of property tax opportunities - the 'Super-deduction' in full colour

Our Managing Director Alun Oliver FRICS and Property Tax Surveyor Todd Arnison hosted the live event online about this allowance introduced in early 2021 - including subsequent changes which now benefit landlords and property investors.

They gave insights into how money can be saved via the super deduction and illuminated the opportunities to capitalise on the benefits it offers.

Background

The Super-deduction was announced in the Budget in March 2021 and then included in the Finance Act 2021 with Royal Assent on 10 June 2021.

It gave corporation tax payers 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 from April 1 2021 to the end of March 2023.

What changed

Initially, the allowances were not available to property investors due to a wide-ranging restriction for leasing activities, including property letting; but following sustained industry lobbying, the Government relented and has allowed qualifying expenditure in leased buildings to qualify for this accelerated allowance.

It was of value to owner-occupiers, landlords & tenants, investors, chartered surveyors, accountants, solicitors, and other property professionals.

The very welcome changes for landlords and investors creates an exciting spectrum of opportunities beyond the very clear financial benefits and money to be saved.

It should play a role for those with expected future asset investment in cashflow forecasting and enable more flexibility in a strategic approach to investment whether that means advancing project timescales to bring schemes forward or launch concurrent or new projects.

It may allow higher specification for existing and new projects or even help to fund investment in business growth, new employees and/or training and development of staff.

The webinar provided a better understanding about the Super-deduction and wider kaleidoscope of capital allowances, as well as clarify the processes involved and qualifying criteria for claiming these useful tax savings.

There were valuable insights and case studies to give colour and illustrate best practice, compliance, project risk management, savings optimisation and cash flow enhancement.