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Business Taxes – Autumn Budget 2024 – UK

October 30, 2024 By accountsadvice No comments yet Accountancy, Business Tax, Capital Allowances Ireland, Capital Gains Tax, Corporate Taxes, Corporation Tax, Corporation Tax Capital Allowances, Cross border Taxes, Pillar Two Ireland, UK Tax, UK Tax Advice, UK Tax Compliance Services

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Business Tax. Corporation Tax. UK Taxes. Reliefs and Changes. UK Autumn Budget

 

 

Today, 30th October 2024, the Chancellor of the Exchequer, Rachel Reeves, delivered the UK Autumn Budget.  She announced the publication of the Corporation Tax Roadmap.  In it, she confirmed that there would be no change to the current corporation tax rate, which is capped at 25%, until 31st March 2027.  The Small Profits Rate and marginal relief will remain at their current rates and thresholds.  No changes will be made to other business tax areas including:

  1. The current Patent Box and Intangible Assets Regime which will be maintained.

 

  1. The Audio-Visual Expenditure Credit will be maintained.  The Video Game Expenditure Credit will also be retained.

 

  1. With regard to Capital Allowances, full expensing for plant and machinery expenditure will be retained.  The £1 million Annual Investment Allowance will also be maintained.

 

  1. 100% first year allowances for qualifying expenditure on zero-emission cars and electric vehicle charge points will be extended to 31st March 2026.

 

  1. In relation to R&D Reliefs, the current rates for the merged R&D Expenditure Credit Scheme as well as the Enhanced Support for R&D Intensive SMEs will be kept.

 

  1. Support to the global taxation agreements under Pillar 1 and Pillar 2 will continue.

 

 

 

Business Tax Changes

 

  • The Pillar Two Undertaxed Profits Rule will be introduced into law and will take effect from 31st December 2024.

 

  • The Government have introduced changes to the taxation of Employee Ownership Trusts and Employee Benefit Trusts which will take effect from 30th October 2024.

 

  • For 2025/26, Retail, Hospitality and Leisure businesses will be given 40% relief on their business rates. The maximum amount available in relief each billing year is £110,000 per business.

 

  • From 6th April 2025, the special tax rules for Furnished Holiday Lets will be abolished. Individuals, corporates, and trusts who operate or sell furnished holiday lettings accommodation will be affected.

 

  • Employer National Insurance contributions will increase to 15.0% from 6th April 2025. The secondary threshold will be reduced to £5,000 per year, the Employment Allowance will be increased to £10,500 per annum while the £100,000 threshold will be removed.

 

  • There will be further consultation on Transfer Pricing.

 

  • Changes to the treatment of carried interest. From April 2025, the CGT rate applicable to carried interest will increase to 32%.

 

 

 

 

Anti-Avoidance Legislation

 

The Government have introduced new Anti-Avoidance legislation in respect to loans to participators.  From 30th October 2024, these reforms will prevent shareholders from extracting untaxed funds from Close Companies. This new legislation is being introduced to prevent loans which are repaid and then reborrowed from associated companies from avoiding the s455 charge.

 

 

Also, from 30th October 2024, the way in which capital gains are taxed when a Limited Liability Partnership is liquidated has been amended. It relates to situations where assets are disposed of to (i) a contributing member, (ii) a connected company or (iii) any other connected person.  The chargeable gain accruing to the contributing member will be computed as if the gain had arisen at the time they initially contributed the asset to the Limited Liability Partnership.

 

 

 

 

 

For further information, please click:
https://www.gov.uk/government/collections/autumn-budget-2024-tax-related-documents

 

 

 

For all your Irish, UK or cross-border business tax concerns, please contact us on queries@accountsadvicecentre.ie

 

 

 

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

 

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