Kirby & Haslam

Prepare Now for the Challenging Corporation Tax Rise

The ‘growth plan’, set out by the then Chancellor, Kwasi Kwarteng, on the 23rd of September 2022, included a number of substantial tax announcements but two of these have now been reversed. On the 14th of October, the Prime Minister announced a return to the previously planned increase in the corporation tax rate to 25% from April 2023. This followed an earlier announcement of the reversal of the planned abolition of the 45% top rate of income tax from the 6th of April 2023.

Overseas R&D – Will It Affect Your R&D Claims?

Changes to R&D Tax Credits were made in 2022, and they are set to go into effect in April 2023. This makes modifications to both RDEC and SME R&D relief.

Measures included in the law include broadening the scope of R&D relief to encompass data and cloud computing investment (more on this here), as well as expanding the term to include pure mathematics. Along with this, there are procedures in place to combat misuse and compliance (learn more about this here) as well as resolve any future abnormalities or unintended repercussions. Perhaps the most significant change for firms with an overseas presence is shifting the focus of relief to innovation in the UK.