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Autumn Statement

In terms of significant new tax changes, yesterday’s Autumn Budget was very light, following previous announcements earlier in the year including National Insurance (NIC) and dividend tax increases ahead, and the suspension of the triple lock on state pensions. Billed as a Budget and Spending Review it was predominantly the latter. At the time of writing, amongst the most relevant announcements for many of our clients were Business rates reforms, and more time for filing Capital Gains Tax returns and paying the tax on residential property disposals.

 

  • Business rates reforms to hopefully provide some stimulus for retail, leisure and hospitality businesses, including revaluations every three years, a new ‘improvement relief’ and a cancellation of the 2022 multiplier. Included is a 50% business rates discount set to apply from 2022/23.
  • R&D tax relief definition of eligible expenditure will be extended to include cloud computing and data costs but to be restricted to UK based activity from April 2023, hence unlikely to be any overseas element of eligible expenditure from that date.
  • 30 day time limit extended to 60 days for making Capital Gains Tax (CGT) returns and associated payments when disposing of UK residential land and property. This applies where completion occurs on or after 27 October 2021.
  • Culture sector tax reliefs (Orchestra Relief, Museums & Galleries Relief and Theatre Relief) extended by 2 years to 31 March 2024. Reliefs increased from 27.10.2021 but tapered after 1.4.2023 such that they return to current rates by 1.4.2024.
  • Annual Investment Allowance of £1m for expenditure on qualifying Plant and Machinery extended to March 2023 (originally it was due to revert to its previous level on 31.12.2021).
  • Perhaps the biggest sigh of relief for many business owners and individuals was the lack of any announced changes to Capital Gains Tax rates and Pensions Tax Relief.


We will monitor developments over the coming weeks and if any further details are announced which could affect you, we will let you know.