How to stimulate growth with the Super-Deduction Allowance
The pandemic forced many companies into an experiment with agile working they might otherwise have resisted. For many, it has been an unexpected success, improving productivity and the work-life
balance of employees. As such, broader adoption of agile working now seems inevitable, but this means offices will need to adapt.
Forward-thinking landlords are well-aware of the need to reconfigure office space. They know that the new generation of office space will need to facilitate collaboration. They recognise the need for buildings to be ‘green’, using renewable energy where possible, reducing toxic materials and eliminating pollution. Many are already working with tenants to understand their changing needs better.
Landlords are also looking more closely at how they can make these changes tax efficiently. The new regime of super-deductions allows them to make these fit outs at far lower cost. This has a number of advantages: lessees save the significant cash expenditure associated with new development at a time when many are under financial pressure. If landlords are willing to do the heavy lifting, it makes the building more appealing to high quality tenants. We see landlords increasing their yield because of the uplift in square footage rates associated with greener spaces that are better adapted to tenant needs.
Find out more about capital allowances and how they can help stimulate growth with the super-deduction allowance in our latest white paper in collaboration with Smith and Williamson, Landsec and Omega RE.
Posted by Hayley Francis on
25 October 2021 at 12:00 AM