Chancellor Jeremy Hunt refuses to extend tax break for business super deduction: British companies get a hammer blow
Hammer blow: Many have called for an extension of the scheme, but Chancellor Jeremy Hunt will not make such a commitment
British companies will be hit this week after Jeremy Hunt has refused to extend the super discount.
The scheme was the brainchild of Rishi Sunak, who as Chancellor in 2021 wanted to boost companies hit by the Covid pandemic by giving significant tax breaks to companies investing in new infrastructure, factories and machinery.
The tax break was welcomed as a blessing by leading businessmen, but will expire in March next year.
Many have called for an extension of the settlement, but Chancellor Hunt will make no such commitment on Thursday.
A source close to the Treasury said: ‘There will be no commitment to extend the super deduction. Hunt won’t renew it next week.’
Philip Jansen, CEO of BT, said earlier this month that the plan was “a great success, not just for our industry”, adding that it has enabled the creation of 4,000 jobs since its introduction in BT.
Deductions such as the super discount can make a big difference, especially given the upcoming corporate tax hike.
The CBI also wants to see an extension of the ‘super deduction’ to allow for tax breaks on capital expenditures.
It comes as Hunt prepares for tax hikes and spending cuts in an effort to balance the books. The source added: “There will be no tax cuts or spending increases. This will be grim.’