May 12, 2022
The UK Government has revealed several tax proposals in the newly released 2022 Budget to boost businesses and the UK economy, with the corporate tax rate expected to climb to 25% from April 2023.
Significant reductions in business rates, the UK’s commercial property tax regime, have been announced. The government claims it will save almost GBP7 billion in business rates in England over the next five years. The Government has stated that the business rates multiplier will be frozen in 2022-23, saving businesses GBP4.6 billion over the next five years.
The government will make it easier for shipping businesses to participate in the Tonnage Tax regime by shortening the lock-in term from ten to eight years, which will better coincide with shipping cycles. HM Revenue & Customs will be granted wider discretion to admit companies into the regime outside of the initial window of opportunity. HM Revenue & Customs will also evaluate instructions on which vessels and operations are eligible for the tax, with the stated goal of taking into account “developments in technology and the maritime business since the tax was implemented.”
To aid in the decarbonization of buildings, the government has announced that beginning in 2023, it will establish exemptions for eligible plant and machinery used in onsite renewable energy generation and storage, as well as a new 100 percent relief for eligible heat networks.
Source: Tax News
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