Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Value of UK business tax breaks hits record £105bn in past year alone

by November 14, 2022
November 14, 2022
Value of UK business tax breaks hits record £105bn in past year alone

The value of business tax reliefs in the UK hit £105.3bn in the past year, up from £100.3bn in 2020-21, shows new research shows.

The £105.3bn figure represents the combined cost estimated by HMRC for the 58 significant tax reliefs available to corporates.

However, these represent just a fraction of the hundreds of tax breaks that are available to UK corporates. The value of many of these is deemed to be so low as to be negligible, according to the data by Thomson Reuters.

Making full use of tax breaks will become even more important for UK corporates, which are preparing for an increase in their tax liabilities due to the proposed jump in corporation rate.

The Government announced in the 2021 Spring Statement that the rate of corporation tax would increase from 19 per cent to 25 per cent for businesses with annual profits greater than £50,000 from April 2023.

This is projected to bring in an additional £22bn of revenue for the Treasury, with corporation tax receipts estimated to increase from £48.8bn in 2022-23 to £71.3bn in 2023-24.

Jas Sandhu Dade, Head of Corporates Europe at Thomson Reuters, said this morning that, should the planned rate increase come into effect, corporates will be looking to make the most of tax reliefs that are available to them.

The increasing complexity of the UK’s tax system, which has seen the number of available tax reliefs fluctuate in recent years, has led to calls for greater simplification of the regime.

However, there are concerns that eliminating lesser-used reliefs could put some smaller businesses at a considerable disadvantage and add to their tax burden.Jas Sandhu Dade, Head of Corporates Europe at Thomson Reuters

“The UK’s corporate tax system has undergone numerous changes in recent years and some businesses are struggling to keep up,” Sandhu Dade explained.

“Tax reliefs play a significant role in incentivising investment and boosting our economy, Sandu Dade continued. “As corporates contend with rising inflation and interest rates, making full use of the various available reliefs will become even more important.”

Examples of tax reliefs that are available to UK businesses are:

Capital investment incentives – Various incentives for businesses to invest in capital infrastructure under Annual Investment Allowances (AIA) and additionally enhanced allowances on specific environmentally friendly expenditures
Tax grouping – Many mechanisms and reliefs to allow connected companies to transfer losses and assets between member companies, in a tax efficient manner
Research and Development – A significantly growing area giving substantial tax benefits to companies doing on-shore research and development activities
Creative Industries – Reliefs and credits to encourage the development of UK resident activities around Film, TV, museums, computer games, music etc.
Double taxation relief – Mechanisms to give credit to UK businesses for taxes uncured overseas.

Read more:
Value of UK business tax breaks hits record £105bn in past year alone

0
FacebookTwitterGoogle +Pinterest
previous post
Deposit Protection Schemes: A Complete Guide To Protect Your Tenancy Deposit
next post
What is a good age to start piano lessons?

You may also like

UK government introduces AI training courses for civil...

August 31, 2024

Economic climate holding back sustainability strategy for seven-in-ten...

November 21, 2022

InPost acquires struggling Yodel in deal to fast-track...

April 17, 2025

Mid-sized Businesses Face Uphill Battle Amidst Soaring Costs...

February 26, 2024

Number of Landlords Selling Up in UK Grows...

August 15, 2023

Rishi Sunak announces controversial delays to UK’s net...

September 20, 2023

Electric car sales reach record high in UK...

January 5, 2023

New Brexit trading rules could take more than...

March 7, 2023

Are you a fit director?

July 19, 2023

In-Depth Q&A with Ernesto Morales, CEO of North...

August 9, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • ICE Is Arresting 1,100 Percent More Noncriminals on the Streets Than in 2017

      June 24, 2025
    • The Safety Risks of the Coming AI Regulatory Patchwork

      June 24, 2025
    • Ending the US Department of Education: Status Report

      June 24, 2025
    • Experts gauge success of ‘bunker buster’ bombs dropped by US on Iran nuclear sites

      June 24, 2025
    • ‘I’m just a silly girl’: AOC fires back after Trump calls her ‘stupid’

      June 24, 2025
    • Biden’s Middle East coordinator praises Trump team for handling of Iranian conflict: ‘Best place we can be’

      June 24, 2025

    Categories

    • Business (8,298)
    • Investing (2,069)
    • Politics (15,781)
    • Stocks (3,165)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved