- Business rates- Chancellor accounted $4.6bn more in business rates concessions
- Business rate multiplier frozen from 1st April 2022 to 31st March 2023 at 49.9p and 51.2p respectively.
- An additional 50% of rates relief will be available for retail, hospitality and leisure properties up to a cap of £110,000 per business.
- R&D Tax relief restricted to UK- restricted to UK activities only, but now includes Data & Cloud costs incurred (However it’s not been released on how this will work)
- Now UK has left EU it seems sensible that the relief is restricted to UK
- Corporation tax- cross border loss relief is being withdrawn for accounting periods ended 27/10/2021 bringing the UK inline with rest of non-EU countries where cross border relief doesn’t exist.
- No changes to VAT & planned corporation tax hikes
- CGT period extended from 30 days to 60 days with immediate affect.
- Also confirmed mixed use properties only part of the gain relating to residential should be reported to HMRC.
- National insurance thresholds are being increased in line with inflation- for 2022/23 the lower earnings limit is set at £123 per week, the primary threshold is set art £190 per week and the secondary threshold at £175 per week for the employed.
- For the self-employed: class 4 upper profits limit frozen at £50,270, lower profits limit is also frozen at £9,880. Class 2 where profits exceed the small profits threshold for 2022/23 £6,725 and class 2 contributions are at £3.15 per week.
- The employment allowance is £4,000 for 2022/23.
- No major changes in inheritance tax, the nil rate band has been frozen at £325,000 since 2009 with the residential nil rate band being introduced and frozen at £175,000 since 2017.
- No changes were brought in terms of reliefs such as Agriculture relief and Business rate relief.
HMRC Given more powers
- HMRC given more powers to deal with tax avoidance industry.
- A new economic levy will apply to large accountancy firms to raise funds to deal with tax avoidance.
- HMRC given the new following powers:
- Freezing orders- now able to be sought at time of investigation
- Offshore promoters- a penalty of 100% of proceeds to be levied against UK entities facilitating avoidance schemes.
- Winding up- new provision allow HMRC to enable a winding up application if an entity is operating against the public interest by operating tax avoidance schemes.
- Naming and shaming- HMRC can now publish information about schemes and promoters at an early stage in the process.
Economic crime (AML) levy: Charged on entities from 2023 on those who are regulated by AML legislation such as accountants, lawyers, estate agents and casinos as well as banking and finance institutions. The levy will be charged on UK revenue of more than £10.2 million, those below this threshold will be exempt from paying the levy.