Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • Putting information security first is your first step to building digital trust.
  • Why the crackdown on late payments could be a turning point for SMEs
  • MPs bring Google training to regions outside London
  • Nearly Half of London Start-Ups Unfamiliar with Tax Obligations, New Analysis Reveals
  • AI isn’t just for the big players: How SMEs can effectively leverage AI
  • UK Businesses Are Suffering From The Tariff Turmoil
  • How employers can help LGBTQIA+ employees thrive
  • Meeting Overload: A symptom of a bigger problem?
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»Finance»Budget analysis – super-deduction tax break replaced by ‘Full Expensing’ 
Budget

Budget analysis – super-deduction tax break replaced by ‘Full Expensing’ 

0
Posted By sme-admin on March 17, 2023 Finance, News

 Gareth Anderson, Head of Business Management at Allica Bank, provides SMEToday’s reader with some analysis around the replacement of the super-deduction tax break with ‘Full Expensing’ 

On Wednesday, the Chancellor of the Exchequer, Jeremy Hunt, presented his Budget to parliament, laying out his plans for the UK economy. 

One small but significant part of his announcement regarded the future of the super-deduction tax break, which Gareth Anderson, Head of Business Management at Allica Bank   was introduced in April 2021 to encourage businesses to invest by allowing them to deduct 130% of qualifying investment costs from their profits when calculating the amount of tax they’ll need pay. 

It was a fantastic incentive for businesses in a challenging time for the UK economy, however it is due to end on 31st March 2023 and be replaced by something called ‘Full Expensing’. So, what is Full Expensing? 

What is Full Expensing? 

Thankfully, tax breaks for business investment are not due to end. Full Expensing, set to take over from the super-deduction when it ends this month, will allow businesses to deduct 100% of qualifying investment costs from their profits before tax. 

This new scheme is initially set to last for three years, “with the intention to make it permanent.” It will allow every single pound spent on IT equipment, plant or machinery to be immediately deducted from a company’s profits when calculating their tax bill. 

In practice this means that until March 2026, for every £1 invested in qualifying expenditure, businesses will be able to save up to 25p on their tax bill. 

It’s claimed that this will result in a total of £9 billion a year saved in tax by UK businesses, making it one of the most expensive initiatives in the Chancellor’s budget. 

How is Full Expensing different from the super deduction? 

The super-deduction allowed businesses to deduct 130% of their investment costs from their tax bill, while the new scheme will only allow 100%. This rate is, of course, lower, but the actual value of savings businesses can make is expected to be a similar amount in light of corporation tax increasing from 19% to 25%. 

It has been suggested that the reason for the super-deduction being higher was to prevent businesses from delaying investment in their business until the corporation tax rise in order to get greater benefit. 

So, ultimately, the opportunity for businesses to invest and save on their tax bill remains similarly attractive. I welcome this extension of the incentive as Britain looks to revitalise its economy and business owners explore opportunities for growth. 

At Allica Bank, we’re able to help established businesses with 10-250 employees invest in new equipment using asset finance. If you’d like to find out more about how we can help your business, or you’d like to learn more about the new scheme, one of our relationship managers will be happy to talk to you. Find your relationship manager now. 

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Why the crackdown on late payments could be a turning point for SMEs

MPs bring Google training to regions outside London

Nearly Half of London Start-Ups Unfamiliar with Tax Obligations, New Analysis Reveals

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
ISO/IEC 27001 roadmap: A practical guide for UK SMEs
ISO/IEC 27001 roadmap: A practical guide for UK SMEs
Are you a Company Director?
Are you a Company Director - Verify your identity
Personal Pension offer
Events Calendar
    • Marketing
    September 9, 2025

    SEO 101 for SMBs: Reaching Customers with the Right Visuals

    August 29, 2025

    OneMetric forms strategic partnership with RevOps expert to drive UK growth

    • Finance
    September 16, 2025

    Why the crackdown on late payments could be a turning point for SMEs

    September 15, 2025

    Nearly Half of London Start-Ups Unfamiliar with Tax Obligations, New Analysis Reveals

    • People
    September 11, 2025

    New Chief Revenue Officer joins CBS to drive strategic growth

    August 14, 2025

    A Life Worth Saving – A Tribute to Dame Stephanie Shirley CH, 1933–2025

    • Health & Safety
    September 2, 2025

    1 in 3 employees anxious about lack of first aiders at work

    July 1, 2025

    Temperatures Soaring: Is Your Workplace Becoming Unsafe?

    • Events
    September 9, 2025

    Nominations for the 2026 Bold Woman Award by Veuve Clicquot open

    July 22, 2025

    South West Expo Delivers Outstanding Event at Swindon’s STEAM Museum

    • Community
    July 11, 2025

    Building community, one cause at a time

    June 23, 2025

    Celebrating One Year In Fairford Supporting The Community

    • Food & Drink
    August 22, 2025

    How to get stocked by major retailers as an SME

    July 18, 2025

    Warning to Small Businesses Over New Food Waste Regulations

    • Books
    September 3, 2025

    New book on conquering fear of public speaking

    August 7, 2025

    Learning to Leave a Legacy in Business

    The Newsletter

    Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

    Sign Up
    About

    SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

    Join Our Mailing List

    Receive the latest news and updates from SMEToday.
    Read our Latest Newsletter:


    Sign Up
    X (Twitter) YouTube LinkedIn
    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • People
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact

    Type above and press Enter to search. Press Esc to cancel.