Super-deduction…super insight from E³ Consulting’s webinar

E³ Managing Director Alun Oliver FRICS and Property Tax Surveyor Todd Arnison led the online event, called ‘Super-deduction…130% tax relief, but super complicated!’.

Clients, property and planning professionals, owner-managers, directors, investors, accountants, architects, solicitors and surveyors were among those to attend the virtual session.

It included Q&A after presentations by Alun and Todd about the new capital allowances and the small print of the Budget recently unveiled by Chancellor Rishi Sunak – including the super-deduction, special rate allowance and freeports.

Alun explained the limitation of the Chancellor’s headline grabbing super-deduction – including exclusions for many property investors plus businesses structured as partnerships, such dentists, GP surgeries and veterinary practices. Other concerns surrounded complexity and timescales.

He said: “One of the criticisms around these types of allowances and temporary measures is that because the time frames are so short, projects that are already in the pipeline may just get pulled forward very slightly.

“There’s a shifting of timing for existing projects but little generation of new investment that the government hoped to create.

“If the government set out longer time frames to allow for longer range planning then it would get both: new investment as well as the acceleration of existing projects.”

There was also an overview of freeports, and the enhanced tax reliefs due to be available once the new Freeport locations are ratified by the government later this year.

Case studies in the webinar included E³’s support for the refurbishment of a Thames Valley head office over multiple phases with first year tax savings of some £290k and further savings of some £150K over time, derive from the £2.2m phase II refurbishment costs.

E³’s expertise covered detailed analysis of costs and site surveys, and liaison with the client/tax accounting team, main contractor and client-managed direct works contractors.

Other case studies included a central London hotel development, a South East industrial/logistics estate and a Dorset GP surgery.

Alun said: “Our thanks to everyone who attended our latest webinar and for the questions raised.

“The UK tax system has become incredibly complicated so it is important to take the right advice as early as possible. We hope our webinar helped clarify some of the finer points of the recent changes.”

Please contact E³ for more details about any of the issues covered in the webinar.