UK Spring Budget 2021: Measures affecting corporates – the reckoning
The UK Spring Budget 2021 brought few surprises; as most commentators predicted, the immediate focus is on measures to support the economy and encourage investment as the UK recovers from the effects of the COVID-19 pandemic. In the briefing at the link below, Paul Davison and John Tolman from our London tax team consider the business tax measures they found the most noteworthy in the Spring Budget 2021.
The briefing highlights that the UK government’s generosity seems set to continue for some time, with the extension or introduction of several tax relieving regimes such as a new ‘super-deduction’ for expenditure on plant and machinery. By 2023, however, these regimes will have expired or been phased out, and the government has signalled that its intention then is to start recovering the costs of this support through a series of tax raising measures, including a substantial increase in the main rate of corporation tax from April 2023.
This briefing was originally published in Tax Journal on 4 March 2021.