How does making APD lower between UK airports tie with the green aims (and indeed increased long-haul duty)? How can it make sense to fly across the country when trains are good and much greener? Sound like a policy to pollute!
– Simon Rothenberg, Director at Blick Rothenberg
Great news that the AIA increased has been continued to March 2023, however the continual changes to this scheme makes is incredibly hard for business owners to plan for the future – a long term commitment and aim for AIA would be welcomed.
– Simon Rothenberg, Director at Blick Rothenberg
50% discount to retail, hospitality, and leisure centre rates (up0 to £110k) is likely to be welcomed by the struggling high street, along with the postponement of increases due next year. This is a big discount!
However, business rates still need to be properly reformed (not tweaked and discounts offered) to equalise between the high street and online warehouse.
– Simon Rothenberg, Director at Blick Rothenberg
Research and development
The Chancellor missed an opportunity to target research and development tax credit reliefs at the green economy. Overall investment in research and development is increasing and the Chancellor announced some revisions to how research and development tax credits work. However, the green economy is growing rapidly and the global market to be at the centre of technological development in this space is very competitive. The Chancellor should have targeted reliefs at this sector in advance of COP26.
Research and development 2
The introduction of the scale up visa and investing in research and development at £20 billion a year by the end of this Government recognises that the UK needs to position itself as a global hub of science and technology to establish its identify post Brexit. Investment in research and development creates jobs but also allows the UK to export its developed goods overseas.
– David Hough, Partner at Blick Rothenberg
EU tax relief roll back starts
Today the chancellor announced that research and development credits for companies will be limited to more closely align with UK activity from April 2023.
There are many other tax reliefs which are extended to EU businesses, individuals, and charities, despite Brexit. This includes giving the personal allowance to EU residents to offset UK income such as rental profits and allowing gift aid on donations to EEA charities.
The research and development announcement may signal the start of the Government scouring the legislation to remove all similar reliefs – something to watch out for in the detail and in future budgets. Whether this will ruffle the feathers of the EU is yet to be seen.
– Robert Pullen, Partner at Blick Rothenberg
Extending the £1m AIA to March 2023 may sound generous, but it is unlikely to be of benefit to the vast majority of UK businesses who are already able to benefit from the 130% super deduction over the same period. Nice one Rishi – announce a giveaway that sounds super but is unlikely to cost a lot.
Really crunch time for business is going to come from April 2023 when these reliefs are withdrawn, and corporation tax is increased to 25%. Businesses need to make the most of the next 18 months, and hope that gives them sufficient time to recover from the impact of the pandemic, before really tough years of high tax rates and low corporate reliefs hit, and no doubt will be here for many years to come.
– Genevieve Morris, Partner and Head of Corporate Tax, Blick Rothenberg