The Chancellor has just sat down from delivering his Budget speech however there were very few new announcements made today. Based on the speech and supporting documents, the main tax points referred to were as follows:
Measures affecting businesses
- The £1m Annual Investment Allowance for capital allowances will remain in place until March 2023;
- R&D tax credits are to be extended to include cloud computing and data costs and to incentivise investment in the UK, further announcements will be made later in the Autumn;
- A residential property development levy of 4% is to be introduced for larger businesses with profits exceeding £25m, to fund the removal of unsafe cladding from buildings;
- A package of changes to business rates will be introduced including:
- 3 yearly revaluations from 2023
- New investment relief for green technology from April 2023
- New business rate improvement relief whereby business rates are not increased for 12 months after improvements are made
- Next year’s planned increase in the multiplier will be cancelled
- A 50% discount for one year for the hospitality and leisure sectors.
Measures affecting individuals
- The 30 day reporting and payment deadline for capital gains tax on the sale of residential properties is to be extended to 60 days with immediate effect.
- The National Living Wage will increase to £9.50 from £8.91.
- Changes to air passenger duty will be made to reflect the distance travelled with lower duties on UK domestic flights from April 2023.
- A new government backed ‘Green Bond’ is to be launched.
- A package of changes to alcohol duties will include:
- A complete overhaul of the system to simplify it with a general principle that the stronger the drink, the higher the duty
- A new small producer relief will be introduced
- Duty on sparkling wines will be reduced in line with still wines
- A draught relief is to be introduced for sale of draught beer and cider in pubs.
- The planned fuel duty increase is to be cancelled.
If you would like to discuss how any of these changes may affect you please contact our Tax Director, Jenny Marks.
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