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USA Will the Chancellor’s Budget deliver for businesses?
Will the Chancellor’s Budget deliver for businesses? Alistair Nichol, tax partner at Evelyn Partners, the wealth management and professional services group, reacts to the Budget.
Will the Chancellor’s Budget deliver for businesses?
Will the Chancellor’s Budget deliver for businesses? Alistair Nichol, tax partner at Evelyn Partners, the wealth management and professional services group, reacts to the Budget
“Today’s Budget focused on a promise to grow the UK economy. The Chancellor’s speech was full of aspiration and affirmation (and four E’s), but it remains to be seen whether sustainable economic growth can be spoken into existence. A healthy and thriving economy needs investment from across the public and private sector, from entrepreneurs and SME owners, to Private Equity, Financial Institutions and other institutional investors nationally and internationally. Historically the UK offered a high degree of confidence around long-term investment – I hope there is sufficient substance in this Budget to continue rebuilding this confidence.
“The announcement of a 100% deduction for qualifying capital expenditure is certainly better than a simple cessation of the 130% super deduction regime without replacement. And from one perspective, given the 25% corporation tax rate from 1 April, from the Government’s perspective the tax relief offered by the replacement regime is close to equivalent. I don’t think that is how most businesses are likely to see things in the round, however. Hopefully this is not a sign of a wider dissonance between the Government’s aspiration and businesses’ motivation.
“Few expected the Chancellor to row back from the planned hike in corporation tax from 19% to 25% from April. However, business will be disappointed by the lack of a clear roadmap to bring down corporation tax in the coming years. Businesses think and plan long-term, and they need the clarity to make investment decisions. The Chancellor did announce the intention to maintain the 100% deduction for qualifying expenditure indefinitely when affordable – it would have been nice if a similar indication of the Chancellor’s thinking could have been given on corporation tax.
“Much like the ambition to being a fully ‘quantum economy’ by 2033, we won’t know the state of the UK economy following today’s Budget until we can measure it.”
About Evelyn Partners
Evelyn Partners is the UK’s leading wealth management and professional services group, created following the merger of Tilney and Smith & Williamson in 2020. With £62.2 billion of assets under management (as at 30 June 2024), we are one of the largest UK wealth managers ranked by client assets and the seventh largest accountancy firm by ranked by Group fee income (source: Accountancy Age 50+50 rankings, 2023).
We have a network of offices in 30 towns and cities across the UK, the Republic of Ireland and the Channel Islands. Through our operating companies, we offer an extensive range of financial and professional services to individuals, family trusts, professional intermediaries, charities, and businesses.
Our purpose is to ‘place the power of good advice into more hands’, and we are uniquely well-placed to support clients with both their personal financial affairs and their business interests. Our personal wealth management services include financial planning, investment management, personal tax advice and, through Bestinvest, we have a multi award-winning online investment service for self-directed investors. For businesses, our wide range of services includes assurance and accounting, business tax advice, employee benefits, forensics, fund administration, fund governance, recovery and restructuring and transaction services.
For further information please visit: https://www.evelyn.com/
Disclaimer
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.
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