Broadly speaking, company tax and finance received more attention than that for sole traders and partnerships in the chancellor's Budget last week. The so-called "super-deduction", a new 130% first-year capital allowance running for two years from April 2021, is available only to companies, in part to make up for a rise in corporation tax from April 2023.It is a welcome incentive for companies planning to invest in plant and machinery as they have an accelerated advantage of two years before the higher corporation tax rates kick in, says Simon Tapp, who heads the agricultural team at accountant Moore Scarrott.The timing of expenditure must be carefully considered between now and what would typically be their year-end of 31 March, says Mr Tapp. Until 31 March, new and used purchases of plant and machinery can qualify for 100% tax relief on up to Elm through the Annual Investment Allowance (AIA), available to companies, partnerships and sole traders until 31 December 2021, when it is scheduled to reduce to E200,000.
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