MHA | Nothing from the Chancellor to sweeten bitter pill of the…

Nothing from the Chancellor to sweeten bitter pill of the Corporation Tax rise

Posted on: November 18th 2022 · read

Large research-focused companies are among the winners from the Autumn Statement but overall recent tax changes have been negative for growth-minded businesses. 

From the perspective of growth-minded business the Autumn Statement was a mixed-bag. The lack of any other major corporation tax announcements will have been a welcome relief for businesses, who are still reeling from successive fiscal statements this year which have seen the main Corporation Tax rate - as well as the Annual Investment Allowance for capital expenditure - going up and down like a yo-yo.  

There will however be disappointment from businesses that there were no new announcements on capital allowances to replace the generous outgoing ‘super-deduction’ scheme and to sweeten the bitter pill of a 25% Corporation Tax rate, which is now only fractionally lower than in other G7 countries like USA, France and Canada. 

Changes to R&D tax relief regimes saw with a reduced rate of relief for the SME scheme but an increased rate for the large company ‘RDEC’ scheme. This is bad news for smaller companies engaged in R&D but will be positively received by large research-focused companies. 

Find out more 

For further guidance on any of the tax measures discussed in this article, please contact your usual MHA advisor or Contact Us. 

Read the latest tax commentary - visit our dedicated hub where we will be providing resources, advice and practical guidance on what these emergency tax measures mean for you and your business, to help you prepare and manage their impact. 

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