2.3 C
Saturday, April 20, 2024

Return to ‘Regular’ Budget Welcome as Government Likely to Prioritise Investment, Says Tax Expert

With widescale changes to tax policy unlikely, the government may focus on giving businesses incentives to invest at next month’s budget, a leading Lancashire tax expert has claimed.


Tony Medcalf, tax partner at Preston-headquartered accountancy and business advisory firm MHA Moore and Smalley, said budget announcements in recent years had been dominated by political and global economic pressures including Covid-19 and the impact of the war in Ukraine.


While he welcomed the likelihood of a return to a more ‘regular’ budget, which would provide stability to businesses, he claimed it was important for chancellor Jeremy Hunt to look at measures to provide a platform for business growth, after increasing corporation tax from 19 to 25 per cent in his last fiscal announcement.


Tony discussed the announcements he believed were most likely, including incentives for companies to invest in research and development and plant and machinery.


He said: “There have been calls for the government to announce a reduction in corporation tax but I do not think we will see that. During his leadership campaign, Rishi Sunk defended the increase in corporation tax and was keen to focus on promoting innovation and research and development.


“The Annual Investment Allowance is currently still £1m so although corporation tax is now 25 per cent, when you look at it, this only affects around 30 per cent of UK companies.


“I think there are going to be a lot of announcements which provide tax relief incentives for companies to invest in their productivity and growth.


“The capital allowances super deduction is due to end on March 31 so this could be the focus of an announcement. We could also see further support for freeports and enterprise zones


“The government is also keen to prompt investment in early-stage businesses and I think more will be announced to encourage this. One possible measure could be the extension of the Enterprise Investment Scheme.”



Navigating European Equities: Trends, Opportunities and Risks

Europe is an exciting place for potential investors because...

Man jailed for raping girl in Burnley

A man who raped a 15-year-old girl in Burnley...

Can Sale Reach the Premiership Playoffs?

The 2023/24 Gallagher Premiership started in earnest on October...

Sheffield United v Burnley: Kompany says Bramall Lane clash is ‘must-win’

Burnley boss Vincent Kompany admits Saturday’s trip to Sheffield...

Subscribe to our newsletter

Business Lancashire will use the information you provide on this form to be in touch with you and to provide updates and marketing.

Don't miss

Corporate Payroll Solutions that Help your Business Stay Competitive

In the competitive world of business, staying ahead of...

Best Horse Racing Betting Apps In The UK – April 2024

If you are looking for the top horse racing...

Sheffield United v Burnley: Kompany says Bramall Lane clash is ‘must-win’

Burnley boss Vincent Kompany admits Saturday’s trip to Sheffield...

Majority of Lancashire primary pupils get preferred school placement

More than 99% of Lancashire children starting primary school...

More News

Pendle residents… do you qualify for a HUG?

Qualifying criteria to receive a Home Upgrade Grant (HUG) has changed, which means more Pendle residents could benefit. The government-funded scheme – run by Cosy...

Why is outsourcing a game-changer for small accountancy practices in the UK?

In the current backdrop of the UK accounting industry, a noticeable shift is occurring among small accountancy practices, as they increasingly turn to accounting...

Five Enterprises Equipping Youth with Essential Financial Skills

The Department for Education Official Statistics currently pegs the average graduate salary in the UK at £38,500. Yet, with living costs soaring, startlingly, nearly half...