The National Association of Motor Auctions (NAMA), representing motor auctions in the UK, comments on the measures outlined in today’s Budget.
Business rates holiday
The Chancellor Rishi Sunak has announced full business rates holiday will be extended until June and rates will be discounted by two thirds for the following nine months.
Louise Wallis, Head of NAMA commented: “The extension of the business rates holiday is positive news for motor auctions as they recover from the disruption caused by the pandemic over the twelve months”.
Corporation tax and ‘super deduction’
In 2023 the rate of corporation tax will increase to 25%. The Chancellor has also announced a ‘super deduction’ tax relief aimed at supporting business investments meaning that for the next two years, when businesses invest in new equipment, they can claim 130% of their cost as a tax cut.
Louise Wallis added: “The increase in corporation tax does not come as a surprise, the impact this will have on businesses when it comes into force in 2023 will be partially offset by the new ‘super deduction’ tax relief will support businesses’ investments over the next two years”.
The furlough scheme will be extended until the end of September; employees will continue to receive 80% of their wages until the scheme ends with businesses asked to contribute 10% in July and 20% in August and September as the scheme is gradually phased out.
Louise Wallis added: “We welcome the extension of the furlough scheme which will provide motor auctions with the capability to retain staff while the economy picks up and our sector continues to gradually return to usual levels of business”
The Chancellor has announced that apprentice incentive payments will be doubled to £3,000.
Louise Wallis commented: “The incentive to hire apprentices represents a positive move which will benefit NAMA members as they continue to invest to create job opportunities and attract talent to our sector”.
Louise Wallis concluded: “NAMA will be looking into the measures announced in the Budget and update our members accordingly”.
NOTES TO EDITORS
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.