Full expensing: The new corporation tax incentive explained
In his Budget speech in March earlier this year, Chancellor Jeremy Hunt kicked off the Government’s plan for growth with changes to business tax legislation, a key policy being ‘full expensing’
“It is a corporation tax cut worth an average of £9 billion a year for every year it is in place”, Hunt said. “The Office for Budget Responsibility says it will increase business investment by 3% for every year it is in place.”
But what did the Chancellor mean by ‘full expensing’, and how does the policy work?