Businesses often need to make capital investments in order to improve efficiencies, expand or simply keep up with the latest technology. When the level of the…
The headline tax figures are as follows:
Tax cuts: the key tax cut is the increase in the threshold for employees’ national insurance contributions – to £9.5K with the ‘ultimate ambition’ to come into line with the income tax threshold at £12.5k. Costings suggest ‘ultimate’ means ‘not by 2024’. Also announced – small increases to employment allowance and structures & buildings allowance.
A small increase in R&D tax relief, which judging by footnote to the table, is the RDEC scheme which is available for large companies, not the SME scheme.
Overall circa £3bn tax cuts.
Tax increases: the reversal of the proposed corporation tax cut and instead maintaining 19%. This raises about £6bn a year from 2021.
The benefit from that is shared roughly 50:50 between spending increases and the national insurance cut over the four year period.
As previously announced, a stamp duty land tax surcharge for non-UK resident buyers will be introduced and used to help fund measures to address rough sleeping. Total yield after 4 years is estimated to be £120m.
Finally, there’s a commitment to ‘review and reform’ entrepreneurs’ relief – so it seems reasonable to expect some new limitations/restrictions regardless of the outcome of the election.
Tax guarantees: promises not to raise rates of VAT, national insurance and income tax.
Tax avoidance measures: new anti-tax avoidance and evasion law. Refers to the tax gap being £35bn but the costings document seems to raise only £200m from reducing avoidance…odd.
And that’s it. So far less of a bidding war with Labour and Lib Dems than expected, and not the widely-trailed ‘end to austerity’ (at least in terms of seeing material increases in spending).