Businesses call for a more strategic review of the capital allowances regime

In the article ‘Is anybody listening?’ (Taxation 7 June 2022 page 18) Alun Oliver set out in detail the background to the current government consultation.

He outlined that the government was looking for feedback on the role that capital allowances (CAs) and the current 130% super deduction (SD) play in business investment decisions and feedback on the policy paper’s suggested options for potential changes which could be introduced in the autumn 2022 budget.

What businesses want

Businesses have now had time consider this consultation and provide their responses. The feedback from a range of businesses I have spoken to can be broadly summarised as the following.

Longer term view required – Businesses want comfort that any changes enacted are for the long term. They are asking for more certainty to enable CAs to be built into their business plans and investment decisions.

The current regime...