Many professional services businesses set to miss out on £25 billion 'super-deduction' tax break
A tax specialist has deemed a super-deduction tax break ‘grossly unfair’ on law firms and other businesses typically structured as partnerships, as the tax break is only available to companies paying corporation tax.
Chancellor, Rishi Sunak, announced earlier this week: "For the next two years, when companies invest, they can reduce their tax bill, not just by a proportion of the cost of that investment, as they do now, or even by 100 per cent of the cost.
"With the super deduction, they can now reduce their tax bill by 130 per cent of the cost."
The super-deduction tax break will apply from 1 April 2021 until 31 March 2023, during which time companies investing in qualifying new plant a...