The introduction of ‘full expensing’ in the form of a temporary 100% first year allowance (FYA) is in many respects a continuation of the super-deduction. The change in the corporation tax rate means the post-tax saving is unchanged. The same exclusions, exceptions and specific rules apply. However, given that the new FYA sits within the existing legislative framework, it is also necessary to review FYA rules that impact on entitlement to and timing of claims. The interactions with loss utilisation and tax accounting are other matters to consider.
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The introduction of ‘full expensing’ in the form of a temporary 100% first year allowance (FYA) is in many respects a continuation of the super-deduction. The change in the corporation tax rate means the post-tax saving is unchanged. The same exclusions, exceptions and specific rules apply. However, given that the new FYA sits within the existing legislative framework, it is also necessary to review FYA rules that impact on entitlement to and timing of claims. The interactions with loss utilisation and tax accounting are other matters to consider.
If you are not a subscriber, subscribe now to read this content.
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