Readers’ forum: Super deduction

My client has been in an engineering business for several years and has now decided to expand by acquiring new plant and machinery some of which will be paid for immediately and some six months later.

He already has a number of businesses and has a significant number of assets in the short-life assets pool.

A friend has suggested that the enhanced first year allowance of 50% might be a better idea than the super deduction as there may be a disadvantage to using this scheme if he disposes of the plant and machinery in the future because the asset will not go into the capital allowance pool and will give rise to a balancing charge on disposal. By then the rate of corporation tax is expected to rise to 25%.

In addition to this he has plans to make a sizable investment on an...