Mini Budget - the capital allowances changes

Earlier in the week the Centre for Policy Studies (CPS) and the US based Tax Foundation (TF) published a paper arguing for greater capital allowances (after the super deduction) to boost growth and GDP.

Following the ‘mini Budget’ there has been a wide range of reactions ranging from shock to awe – depending on one’s political outlook. Market sentiment is also mixed with immediate impact to currency levels gilt and bond yields as well as concern for future mortgage rates after the widest tax cuts for 50 years – in total expected to cost in excess of £160bn over five years. Bear in mind the economist mantra as to reliability of forecasts beyond six to 18 months.

Only time will tell if the chancellor and new prime minister will be celebrated for their shrewd genius or remembered for their reckless ‘all-in’ gamble. Among the noise ...