"The temporary extension of carry back losses will provide valuable support to businesses severely impacted by Covid disruption over two accounting periods. It's pleasing to see that the Chancellor has considered ways to adapt existing rules to provide additional assistance to the business community."
Richard Moor, Partner
“Rishi called it a “Help to Grow Budget”, the opposition called it a “Budget that papered over the cracks”. I was disappointed with the freeze of income tax thresholds, thus hitting the lower rate taxpayers with no help for freelancers or the self-employed. I was happy to see the extension of the furlough scheme and the stamp duty holiday extensions. Interested to see the detail in the “Super Deduction” for company investments.”
Erica Manderfield, Tax Partner
“Perhaps one of the better pieces of news from the Budget was what was not included. In the last few months one of the “hot” tips was an increase in capital gains tax rates perhaps to bring them in line with income tax rates, and a reduction in the capital gains tax annual exemption. There were also rumours of possible restrictions in Business Property Relief for Inheritance Tax.
We are pleased to say that there were no major changes in either of these areas, with a freezing of the capital gains tax annual exemption at the current amount of £12,300 until 2025/26 the only change of note.”
Paul Brophy, Tax Partner
“The chancellor announced an increase in corporation tax rates of up to 25% in 2023 which is an extraordinary reversal of longstanding policy.
The other headline for companies is the super deduction of 130% for capital expenditure by way of available capital allowances and extended loss relief - we await to see further details in relation to these measures.
So, businesses are being encouraged to accelerate investment and tax deduction which should lead to higher returns and subsequently higher rates of corporation tax.
It is even more important to ensure that UK businesses are making use of the reliefs that are available in order to minimise its tax liabilities.”
Mustafa Rafik, Corporate Tax Partner