Can the scope of super-deduction relief be extended?

ACCA backs call for super-deduction allowance to be extended for businesses hiring equipment

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Following member feedback via ACCA’s SME Tracker Survey, which found in July that a third of SME practice clients have found it harder to obtain finance and operating leases, ACCA has backed a call to the government to expand the scope of the super-deduction.

On the 12th August ACCA co-signed a letter from the Finance and Leasing Association to the Chancellor of the Exchequer, Rishi Sunak MP, along with other related membership bodies, to request that the super-deduction allowance be extended to include leasing and short-term hire finance.

Currently the allowance, announced in March, is only available to businesses using cash or hire purchase to buy new machinery outright. However, ACCA and other bodies have argued including leasing and hire in this policy measure will mean businesses can access more productive machinery and be more responsive to business need by accessing equipment for only as long as it’s needed.

Alongside Glenn Collins, head of policy, technical and strategic engagement at ACCA, other signatories to the letter included:

  • Stephen Haddrill, director general, Finance & Leasing Association
  • Gerry Keaney, chief executive, British Vehicle Rental and Leasing Association
  • Alasdair Reisner, chief executive, Civil Engineering Contractors Association
  • Ian Cass, managing directo, Forum of Private Business
  • Elizabeth de Jong, director of policy, Logistics UK
  • James Selka, CEO, Manufacturing Technologies Association.

Members wishing to have their say in ACCA’s SME Tracker Survey can email UKPolicy@accaglobal.com to register their interest.