In the Autumn Statement the government have confirmed a number of tax relief changes to take effect from April 2023, and included an emphasis on tackling tax avoidance, evasion and wider non-compliance. The changes are summarised as follows:
- Corporation Tax rate increasing from 19% to 25%
- Annual Investment Allowance to be permanently set at £1,000,000
- Higher rate income tax threshold reduced from £150,000 to £125,140
- 100% FYA for electric vehicle charge points extended to 31 March 2025
- Research & Development Allowances additional deduction reduced from 130% to 86%
- New investment zones introduced in Sept 22 to change and ‘refocus’; existing expressions of interest will not be taken forward
- £79m will be invested for HMRC to allocate additional staff to review claims.
With tax rates increasing by 30% it has never been as important to not only maximise Capital Allowances claims but to ensure that claims are undertaken by experienced specialist advisors with robust compliance procedures which can fully substantiate submission to HMRC.