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Chancellor Jeremy Hunt is using the Spring 2023 Budget to freeze fuel duties for another year and to ensure that the corporate tax will rise to 25% from 19%.
The government is now introducing full spending from 1 April 2023 to 31 March 2026.
This means that companies across the UK will be able to write off the full costs of their prime rate plant investment and qualifying machine investment in the year of investment.
Sue Robinson, CEO of the National Franchised Dealers Association (NFDA), said it was “positive” that the government had maintained the fuel duty freeze and replaced the super deduction tax with a new investment allowance scheme.
“The NFDA is cautiously welcoming the replacement of super-deductions with new investment allowance schemes. This involves removing 100% of direct capital expenditure costs from profits.
“In some circumstances, the reduction may facilitate greater investment by dealers, but this does not offset the disincentive to invest as a result of increased corporate taxes.”
“The recent announcement to introduce a Vehicle Exercises Duty (VED) for electric vehicles in 2025 has reduced the appeal of buying a new electric car as motorists no longer benefit from the tax-free purchase that distinguishes it from an Internal Combustion Engine (ICE). partners.
It’s sending the wrong message at the wrong time and Chancellor still hasn’t established a policy on electric vehicles sending the right message. This time, according to the NFDA, is a missed opportunity to create a comprehensive road tax scheme.
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