Autumn Budget 2021

Chancellor Rishi Sunak has delivered his Autumn Budget at a time when the UK is facing a number of significant challenges. How will his announcements affect business in the period ahead? Page Kirk Tax Consultant Nick Giles gives his assessment.

Unsurprisingly, the October Budget was light on changes to taxation and focused instead on the state the economy finds itself in, the economic outlook for the future and Government spending plans. It wasn’t completely devoid of tax measures however, and here are some of the key announcements that will affect businesses.

R&D Tax Reliefs

The Government will reform R&D tax reliefs to ensure they are better suited to modern research methods and will seek to target reliefs on R&D carried out in the UK rather than overseas.

Annual Investment Allowance (AIA)

The AIA, which gives businesses a 100% deduction from their taxable profit on qualifying capital expenditure, will be maintained at its current level of £1m until March 2023.

Business Rates

The business rates multiplier will be frozen for a further year and businesses in the retail, hospitality and leisure sectors will get a 50% business rates discount.

Duties

Alcohol duties will be overhauled so that drinks are taxed in proportion to their alcohol content. Air Passenger Duty for flights between airports in England, Scotland, Wales and Northern Ireland will be cut by 50%. Fuel duty rates will be frozen for a further year.

If you want to discuss the implications of any of the Chancellor's proposals, then please contact Nick Giles by calling 0115 955 5500 or emailing enquiries@pagekirk.co.uk.