Budget: Key business tax measures
27th October 2021The 2021 Budget included two key tax measures for SME businesses:
- The retention of the £1m annual investment allowance for capital expenditure, up to 31 March 2023, is to be welcomed and is a measure to encourage businesses to keep investing in new plant and machinery.
- The Budget also confirmed the Government’s commitment to R&D tax credits but only to the extent that the work is undertaken in the UK. This change is possible now that the UK has left the EU, as the UK no longer needs to comply with EU non-discrimination requirements. This proposal will mean that businesses will need to find the required expertise for specialist elements of their R&D within the UK, so this may increase the cost of the research undertaken.
It had of course already been announced that employer’s NIC will increase by 1.25% wef 6-Apr-22.
- Whitings summary and full commentary on 2021 Autumn Budget: Click Here.
We now await with interest to see how this Budget translates into the next Finance Bill.
Blog entry by: Jeannette Hume.
Disclaimer - All information in this post was correct at time of writing.
