The Chancellor Rishi Sunak delivered his Autumn Budget and Spending Review earlier this afternoon, setting out a new Charter for Budget Responsibility, alongside revised economic forecasts and spending plans.
The key tax announcements include:
1) Creative tax reliefs for theatres, orchestras, museums and galleries doubled until April 2023, with rates reducing to current levels by 2024
2) R&D Tax Relief:
– Scope to be expanded to include cloud computing and data costs
– Restricted to UK activity from April 2023
3) Tonnage tax for shipping: amendments to favour shipping carrying a UK flag
4) Air passenger duty:
– A reduced rate for internal UK flights from April 2023
– A new additional rate for long-haul flights
5) Annual Investment Allowance of £1m extended to April 2023
6) Business rates:
– 50% discount for the retail, hospitality and leisure sectors for 12 months
– Revaluations every three years
– 12 months exemption for business property improvements
– Investment relief for green investment
– Multiplier frozen for 2022/23
7) Alcohol duty to be simplified and reformed:
– To be based on alcohol strength
– Reliefs for small producers
– Relief for draught beers and ciders
– Planned increase for spirits cancelled
8) National Living Wage to increase to £9.50 per hour from April 2022
9) Fuel duty: planned rate rise cancelled
10) Universal Credit: taper rate to be reduced from 63% to 55% by 1 December 2021
11) Capital Gains Tax on residential property: reporting deadline increased from 30 to 60 days
12) A pledge to reduce taxes by the end of this Parliament
Our detailed summary will follow shortly. Please do not hesitate to get in touch with a member of our Tax team.