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Saturday, April 20, 2024

Chancellor refuses to extend super deduction tax break

Jeremy Hunt will not commit to extending the super deduction tax break in his statement on Thursday.

The scheme was initially devised by Rishi Sunak when he was chancellor in 2021 and its aim was to relieve businesses – who had invested in new infrastructure, machinery or plants – significantly hit by the Covid pandemic.

Calls for tax break extension

The tax break is due to expire in March despite many calls for it to be extended, considering there will be a hike in corporation tax.

BT chief executive Philip Jansen was among those praising the scheme earlier this month, when he hailed it a “a major success, not just for our industry” and that it had created 4,000 jobs across BT since being introduced.

A “bit more tax”

Hunt prepares to unleash tax hikes and spending cuts in a bid to balance the books.

He has hinted that everyone will need to pay ” a bit more tax” after Thursday’s budget as he warns sacrifices will need to be made across the board to get the economy back on track.

However, he has stressed it is “not just bad news” and that he is keen to steer British people through some difficult times.

Delivering “certainty” to families and businesses – in the wake of recent market turmoil sparked by Liz Truss’ mini-budget – was important to him, he said.

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