Budget 21: Govt introduces 130% ‘super deduction’ investment tax incentive
Budget 21: Chancellor Rishi Sunak (pictured) has introduced a ‘super deduction’ tax incentive for companies with cash reserves which invest in new materials and creating jobs.
The super deduction, which will be in place for the next two years, will provide companies with a 130% reduction to their tax bill.
Sunak stated that the measure would be worth £25bn over the two years it is in place, and that the OBR has found it could boost business investment by 10% – around £20bn more per year.
He said: “Right now, while many businesses are struggling, others have been able to build up significant cash reserves.
“We need to unlock that investment. We need an investment-led recovery.
“We’ve never tried this before in our country.
“It makes our tax regime for business investment truly world leading.
“This will be the biggest business tax cut in modern British history – an unprecedented action to get companies investing, creating jobs and driving our economic recovery.”