With the Chancellor scheduled to deliver the Budget next week, there has been considerable speculation as to how he will look to repair the nation’s finances, whilst encouraging growth and investment following the departure of the UK from the European Union and the ongoing COVID-19 pandemic.
Over the past couple of weeks, there has been increasing speculation over a potential rise in tax payable by companies. Currently, companies suffer corporation tax on profits at a rate of 19%, but there have been various reports in the press that the rate could rise, possibly in incremental amounts over time, reaching 23% by the next Election.
The rise could go hand in hand with bolstering existing tax reliefs to encourage business investment as the economy recovers, such as Research and Development Allowances and Capital Allowances.
The increase in such allowances may accord with the ‘levelling up’ agenda of the government, particularly as there is a greater concentration of manufacturing businesses in the North of England which may potentially benefit from more generous tax reliefs on capital investment.
Please join us for our Post Budget Webinar on 4th March 2021 where we will discuss the announcements made and how they may impact on your business.