The Law Society has called on the government to extend a tax break to law firms that invest in equipment such as IT.

So-called ‘full expensing’, a scheme which runs for three years from next month, will allow businesses that pay corporation tax to claim back the tax they pay on qualifying plant and machinery investment. The policy is aimed at making the UK an attractive place for companies to invest.

Lubna Shuja, president of the Society, explained: 'Many law firms operate under the partnership model and as such partners are taxed individually. This means they do not pay corporation tax and so cannot access the scheme.

'This creates an odd situation where an insurance company could invest in IT and receive the allowance, but a law firm next door would be unable to. Extending full expensing to cover law firms would unlock further investment in one of the UK’s most productive sectors. Legal services add £60bn to the UK economy annually and employ 1.1% of the UK labour force.'