To enshrine a raft of landmark tax changes into law, the Autumn Finance Bill 2023 has been published today (Wednesday 29 November 2023) following last week’s Autumn Statement for Growth. By cutting and simplifying taxes, the Bill provides a boost to British business, as it makes full expensing permanent – an effective £11 billion in tax savings for companies.
The Bill simplifies R&D and extends the Enterprise Investment Scheme and Venture Capital Trust by 10 years each to 2035, so younger companies can get the funding they need today to become the unicorns of tomorrow. The majority of the changes will take effect in April 2024.
“This Bill marks our next step in making the UK into the best place in the world to do business – and that’s the way we grow our economy and drive up living standards for all. We have the lowest rate of corporation tax in the G7, and full expensing effectively cuts it further by £11 billion a year – the biggest British business tax cut in modern British history to help firms invest for less,” said Financial secretary to the treasury, Nigel huddleston.
With permanent full expensing, corporation tax can be reduced by £11 billion per year, ensuring that the UK will keep its lowest headline corporation tax rate and the largest capital allowances among the G7. With the Autumn Statement expected to boost investment by £20 billion per year by the end of the decade, the United States, Japan, South Korea and Germany will all belong to the OECD group of major advanced economies.
On Monday 27 November 2023, the Bill received its first reading in Parliament. It will now proceed through the normal legislative process.
For Further information read the Autumn Finance Bill 2023.
