Appeal for super-deduction tax to support leasing options
LOGISTICS UK has joined six other groups in writing to the Chancellor of the Exchequer, Rishi Sunak MP, to urge him to extend the eligibility criteria for the super-deduction allowance (SDA) to include leasing and short-term hire.
Affordable leasing and short-term hire options are essential for logistics businesses to acquire the vital plant and machinery they need for their operations, according to Logistics UK.
From 1 April 2021 to 31 March 2023, the SDA enables companies to claim 130% capital allowances on qualifying plant and machinery investments, in effect, cutting a companies’ tax bill by 25p for every pound they invest in new equipment. While the measure was designed to benefit businesses financially and operationally, the legislation excluded leasing and short-term hire, which are some of the most common ways plant and machinery are acquired by businesses
Logistics UK public policy manager Denise Beedell, said: “The logistics industry has risen to the challenge of keeping the supply chain going in the face of unprecedented obstacles and rising costs; including leasing and short-term hire would provide much needed support to this vital sector now also working to meet the even more testing challenge of the transition to net zero.”
Finance & Leasing Association director general Stephen Haddrill, added: “The era of buying plant and machinery outright is long gone. It’s so much more efficient for firms to lease or hire-in what they need when they need it, but the super deduction allowance simply does not support the realities of how modern businesses operate. The Chancellor has a real opportunity here to nurture productivity by getting the newest, cleanest and most efficient plant and machinery into the hands of business owners.”
