On the 22nd November, the Chancellor delivers his Autumn Statement 2023. Presumably, we should expect some give-aways as 2024 is an election year, although the real platform for potential easing of tax rates will probably be deferred until the Spring Budget 2024.
Larger corporations have lobbied to make the “Full Expensing” of capital expenditure, i.e., no limits on the 100% write-off for corporation tax purposes, a permanent feature of the corporate tax system. Presently, the relief is due to expire 31 March 2026.
The Chancellor will no doubt be gratified by the recent fall in inflation. The rate dropped sharply to 4.6% in October 2023 as energy prices continue to fall.
However, it is unlikely that this will result in significant tax reductions as the additional spending power created would be an upward push to inflation.
Interest rates are still high, and homeowners will be looking for some help with their mortgage repayments. As house prices have flat lined, or reduced in some areas, the pinch of inflation, high interest rates and stagnant house sales will raise the spector of negative equity – mortgage debt creeping ahead of property values.
Hopefully, the Chancellor will have some good news for the UK’s business owners who are fighting to maintain profits and funds to invest in much needed research and capital equipment expenditure.
We may be entering the age of AI and the opportunities that this may bring, but until the present squeeze on consumption eases, it is unlikely many businesses will be able to generate the additional profits to fund growth or feel sufficiently optimistic to raise more capital or seek funding from outside sources.
Readers will be advised of the announced Autumn Statement changes as soon as we have processed Jeremy Hunt’s comments.