As recently announced by Chancellor Rishi Sunak, please see listed below a clear breakdown of new measures and changes in taxation:
Income tax Tax thresholds will be frozen until 2026: no longer increased in line with inflation, this affects:
- Personal tax thresholds - Higher rate tax thresholds From 2026: the personal allowance will increase to £12,570, the higher rate threshold to £50,270
Other allowances are also frozen:
- Inheritance tax exempt amount unchanged at £325,000 - Pensions allowances unchanged £40,000 p.a and no change to lifetime limit - Capital Gains Tax exempt amount - VAT registration threshold remains at £85,000 until 2022.
Corporation tax - From 1 April 2023 Corporation tax will increase to 25% - A small company profit rate (19%) for companies with profits of <£50,000 - Full higher rate for larger more profitable companies with profits of >£250,000
Losses - Changes to current year loss rules: to be carried back three years
- New Super deduction for companies - 130% reduction for expenditure on innovation
Duties - Alcohol duties frozen - Fuel duty frozen - Funding and investment models
- A new UK infrastructure bank will be capitalised at £12b initially this Spring A new sovereign retail savings product. A new future fund breakthrough to attract companies to list Changes to allow more flexible pension investments
- Help to grow A new initiative for business
Science and innovation - More cash for vaccine rollout - 2 new consultations on Research & Development and EIS - Visa reforms to attract highly qualified visa applicants.