The 2024 Budget sees the introduction of a Corporate Tax roadmap outlining key commitments for the current Parliament. This appears to be a well-travelled road in that very little change is planned and that consistency will likely be welcomed by the business community.
Key points:
Corporation tax rate:
- Capped at 25% for this Parliament
- Monitoring international developments to ensure competitiveness
- Maintaining the small profits rate and marginal relief at current rates.
Capital allowances:
- Permanent full expensing maintained
- Annual investment allowance maintained at £1 million
- Continued support for writing down allowances and the structures and buildings allowance
- Exploring further clarity and simplification of capital allowances.
R&D and patent box reliefs:
- Maintaining the R&D expenditure credit scheme and enhanced support for R&D intensive SMEs
- Enhancing administration with an expert advisory panel and improved guidance
- Launching an R&D disclosure facility by the end of 2024
- Maintaining the current patent box and intangible asset regimes.
What’s next?
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