As already trailed, we have full expensing relief being introduced in April 2024, together with a single R&D tax relief regime. The finer details of these have yet to be announced, and so we could see positive tweaks to either of these to offset some of the pain of the increased corporation tax rate.
We hope that the Chancellor will not do anything further to increase this pain for corporates, as there are already murmurings that the 25% tax rate for large businesses is a step too far for some. Those groups with existing overseas operations and the ability to change their operating structure are starting to consider alternatives.
The current VAT registration threshold of £85,000 has remained the same since 2017, and so it is possible an increase may be considered.
Other VAT measures are likely to be sector specific and focussed on areas popular with voters, such as the entertainment and leisure industries. Pubs, in particular, have been campaigning hard for additional support.
With Government funding due to commence shortly for the previously announced Investment Zones, an initiative designed to support the UK’s growth industries in high potential but underperforming areas, we may see an update on how the scheme is progressing.