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
  • Finance Founder Celebrates Business Milestone With Advice For Entrepreneurs
  • Fast fashion giant Shein accused of “dark marketing” – what does it mean for businesses?
  • Why GDP Growth Isn’t the Full Story for UK Businesses
  • Windsor Expo Wows: A Showcase of Success, Innovation, and Local Business!
  • Women aren’t risk-averse, they’re risk smart
  • “The Art of Difficult Conversations” Webinar
  • How data is transforming the fabric of SME lending
  • An interview with Dr. Jo Salter MBE: The RAF’s first female fast jet pilot.
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

Finance Founder Celebrates Business Milestone With Advice For Entrepreneurs

Why GDP Growth Isn’t the Full Story for UK Businesses

Windsor Expo Wows: A Showcase of Success, Innovation, and Local Business!

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
Get £100 of free trades - ii trading account

The Newsletter

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

Sign Up
Events Calendar
    • Marketing
    June 20, 2025

    Fast fashion giant Shein accused of “dark marketing” – what does it mean for businesses?

    June 16, 2025

    “My business almost died, twice – here’s how I saved it”

    • Finance
    June 20, 2025

    Finance Founder Celebrates Business Milestone With Advice For Entrepreneurs

    June 20, 2025

    Why GDP Growth Isn’t the Full Story for UK Businesses

    • Health & Safety
    January 29, 2025

    UK takeaways guilty of shocking hygiene failures:

    December 18, 2024

    Comment on Covid Corruption Commissioner Investigation

    • Events
    June 19, 2025

    Windsor Expo Wows: A Showcase of Success, Innovation, and Local Business!

    May 27, 2025

    Jose Ucar Confirmed for Leadership Live 2025 Speaker Line-Up

    • Community
    June 2, 2025

    National Charity Accelerates Children’s Reading Through New Corporate Partnership

    May 14, 2025

    Social care experts launch an online marketplace to disrupt a sector in crisis.

    • Food & Drink
    June 16, 2025

    Hospitality industry risks collapse

    June 4, 2025

    Creative Nature Launches Its First-Ever Kids’ Snack Bar Range in Tesco Nationwide

    • Books
    April 24, 2025

    Values-Driven Professionalism: A Path to Client Loyalty

    December 2, 2024

    Banish the banshee boss: how to lead without fear – addressing the issue of fear-based management and how NOT to be this manager

    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
    Most Recent Posts
    June 20, 2025

    Finance Founder Celebrates Business Milestone With Advice For Entrepreneurs

    June 20, 2025

    Fast fashion giant Shein accused of “dark marketing” – what does it mean for businesses?

    June 20, 2025

    Why GDP Growth Isn’t the Full Story for UK Businesses

    June 19, 2025

    Windsor Expo Wows: A Showcase of Success, Innovation, and Local Business!

    June 19, 2025

    Women aren’t risk-averse, they’re risk smart

    Categories
    • Books
    • Community & Charity
    • Education and Training
    • Environment
    • Events
    • Features
    • Finance
    • Food and Drink
    • Health & Safety
    • HR & Recruitment
    • In Profile
    • Legal
    • Marketing
    • News
    • Property & Development
    • Sponsored Content
    • Technology
    • Transport & Tourism
    • Wellbeing & Mental Health

    Copyright © 2020 SME Today.

    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Privacy
    • Contact

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