IAAF comments on Budget

Date: Friday 05 March 2021

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The IAAF commented on the Budget that

“The extension to the furlough scheme and increased access to grants and support is welcome. It gives aftermarket businesses more breathing room following a very difficult period and will help businesses adjust following the MOT extension and the subsequent effect on the number of tests undertaken.

While more details will be announced, the new 130% first-year capital allowance for qualifying plant and machinery assets will continue to assist our members investment activities.

Businesses face countless challenges currently across numerous fronts and so it’s important they are provided with the support they need to grow and develop. Support for more traineeships and raising incentive payments for firms taking on apprentices is key as the market embraces a more diverse vehicle parc than ever before.

Finally, the automotive aftermarket has performed exemplarily over the past year, supporting UK infrastructure and providing essential support to critical workers. There are further challenges ahead for the automotive aftermarket and so it’s important we remain united in our efforts to champion the excellent work the sector provides.”

The key points in the Budget were:

• The rate of Corporation Tax will increase to 25%. In order to support the recovery, the increase will not take effect until 2023. Businesses with profits of £50,000 or less, around 70% of actively trading companies, will continue to be taxed at 19% and a taper above £50,000 will be introduced so that only businesses with profits greater than £250,000 will be taxed at the full 25% rate.
• Additional £126 million for 40,000 more traineeships in England, funding high quality work placements and training for 16-24 year olds in 2021/22 academic year.
• Beginning April 2021, the new super-deduction will cut companies’ tax bill by 25p for every pound they invest in new equipment. This is worth around £25 billion to UK companies over the two-year period the super-deduction will be in full effect.
• Eight new English Freeports will be based in East Midlands Airport, Felixstowe & Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside.

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