Chancellor Rishi Sunak delivered his Autumn Budget announcement in parliament today to outline government spending and plans for the future.
In the Budget, Rishi Sunak set out measures to support the recovery of the UK economy following what has been a difficult year for many families and businesses.
Although it was announced prior to the Budget, the Chancellor today confirmed that the National Living Wage will increase to £9.50 per hour for workers over the age of 23, from April 2022.
For a full-time worker, this will see an annual pay increase of over £1,000.
What key tax changes were announced?
- Reform of tax relief for R&D investments to include cloud computing and data costs
- Universal Credit taper rate lowered from 63% to 55% alongside the workers allowance increasing to £500
- Vehicle excise duty (VED) for HGVs will be frozen until April 2023
- £1m annual investment allowance extended to March 2023
- Business rates will remain at the same rate however, businesses in the retail, hospitality, and leisure sectors including, pubs, venues, cinemas, restaurants, hotels, theatres, and gyms will all receive 50% business rates discount
- Corporation tax on banks will increase from 27% to 28% in 2023
- The 30-day capital gains tax window for residential property owners has been extended to 60 days
- Residential Property Developer tax announced from April 2022 at 4% on profits exceeding an annual allowance of £25m
- Lower rate of air passenger duty from April 2023 for flights between England, Scotland Wales and Northern Ireland
- Air passenger duty ultra long haul band will be added for flights over 5,500 miles with an economy rate of £91
- Planned fuel duty increase will be cancelled
- Tonnage tax (shipping) reform will reward companies for adopting UK merchant shipping flag (red Ensign)
- The planned increase in alcohol duty will be cancelled. Stronger alcohol will be taxed more and the 15 main duty rates will be reduced to 6
- Sparkling wines will pay the same duty as still wines of equivalent strength. Duty will also be reduced for fruit cider.
- Small cidermakers and others making alcoholic drinks of less than 8.5% ABV will benefit from the small brewers’ relief
For more information on how these tax changes may affect you or your business, feel free to contact us.
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