The Chancellor’s ‘Mini Budget’ – A Tax Bonfire!

The Chancellor announced radical changes to tax and boosting various fiscal incentives to help nurture rapid growth, investment and productivity across the UK. Cutting income tax, corporation tax, business rates, NIC and SDLT to name a few. Creating in our view a monster Tax Bonfire!

The ‘Mini Budget’ saw a host of changes affecting taxes on property investment – particularly to capital allowances - permanently fixing the Annual Investment Allowance (AIA) cap at £1m per annum and introducing new Investment Zones that will have boosted rates of relief.

Alun Oliver, E³ Consulting Managing Director said “An extremely radical Autumn ‘Mini’ Statement – sweeping tax reforms to deliver growth – potentially a massive gamble – but could be bold reforms to drive growth, investment and innovation. New Investment Zones (akin to 1980’s styled Enterprise Zones) with ten-year tax incentives should encourage investment, create jobs and accelerate growth. These will enjoy significantly better capital allowances, as well as reduced business rates and SDLT. The challenge will be how quickly these significant announcements can become policy and support UK businesses and households!

With two significant consultations around capital allowances and tax relief, it is good to see longer term measures finally being announced (after much lobbying) alongside reduced tax rates for both business and individuals. Additional promises to address planning reforms – which may override the current Levelling Up & Regeneration Bill (or perhaps complement and extend it? Only time will tell!) as the draft legislation gets published over the next few weeks and months.”

To understand more about the affects on tax, property and construction – read our full ‘Mini Budget’ article summary here.