Chancellor of the Exchequer Rishi Sunak has now promised to slash taxes for UK businesses to drive productivity and encourage flagging investment, alongside further initiatives to overhaul the present research and development system for tax credits.
Sunak stated he would consult with enterprises on how best to reduce taxes ahead of autumn’s Budget to boost investment, setting out a selection of options that would effectively replace the current “super-deduction” tax break for capital spending due to end in 2023.
The Challenger added that before the autumn Budget, he would decide, whether or not to make the research and development expenditure credit higher. The UK Treasury has already made a commitment to reforming the current research and development tax system.
British business investment is acutely lower than rival countries in the EU rivals such as Germany and France, and this is something about which Sunak has previously expressed concern. Recently, business groups have stated that planned rises for corporation tax and the end to the tax break in 2023 will further slow company investment.
In his Spring Statement address, Chancellor Sunak told ministers:
“In the autumn Budget, we will cut the tax rates on business investment. I look forward to discussing the best way to do that with businesses.”
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